FTD provides update on court-supervised restructuring process
FTD provided an update on its court-supervised restructuring process. The company has:
- Entered into a definitive asset purchase agreement with PlanetArt to acquire Personal Creations for $18.1 million in cash, subject to customary adjustments;
- Entered into a definitive asset purchase agreement with Farids & Co., LLC, which is owned by Tariq Farid, founder of Edible Arrangements, LLC, to acquire Shari’s Berries for $5.0 million in cash, subject to customary adjustments; and
- Entered into an amended and restated definitive asset purchase agreement with an affiliate of Nexus Capital Management LP to acquire FTD’s North America and Latin America Consumer and Florist businesses, including ProFlowers, for $95.0 million in cash, subject to customary adjustments. The amended and restated agreement eliminates certain closing conditions and termination rights included in the previously announced agreement.
The company is operating in the ordinary course and remains focused on supporting its extensive network of member florists and business partners connected by its FTD brand in North America and Latin America. The company’s other businesses, including ProFlowers, Shari’s Berries and Personal Creations, are also continuing to provide floral, specialty food, gift and related products to consumers.
Scott Levin, FTD’s President and Chief Executive Officer, said, “We are making progress implementing our strategic initiatives. Nexus Capital, PlanetArt and Farids would each bring stability and expertise to continue growing our businesses and providing customers the outstanding service they expect. As we move through this process, we continue to serve customers and support our member florists and business partners in the ordinary course.”
The asset purchase agreements are subject to certain customary closing conditions. The asset purchase agreements also remain subject to higher or better offers, as well as to approval of the Bankruptcy Court. The company will seek to close the transactions as soon as possible and in accordance with milestones agreed to with its DIP lenders.