Jackson and Perkins Sold

On April 2, Harry and David announced the sale of Jackson and Perkins, major wholesaler and retailer of roses in the United States.

According to the announcement,

Jackson & Perkins was founded in 1872 and is the nation’s largest
marketer of premium rose plants, grown on approximately 3,200 acres and
harvesting over six million rose plants annually. Jackson & Perkins
generated net sales of approximately $74.0 million over the past twelve
months. . .

Harry & David Holdings, Inc.
announced. . . that Harry & David Operations Corp. (the “Company”) and its
Jackson & Perkins Operations subsidiary have agreed to sell the Jackson &
Perkins business to two unaffiliated buyers for an aggregate of $49
million, $46 million of which is payable in cash at closing. The purchase
price is subject to a customary post-closing working capital adjustment.
The transaction includes the sale of the direct marketing and wholesale
business, the Jackson & Perkins(R) brand, catalog, e-commerce website and
associated inventory, including its premium rose plants, horticultural
products and home and garden decor, as well as its direct marketing and
wholesale customer lists and relationships to an investment group led by
Donald and Glenda Hachenberger and the sale of approximately 3,200 acres in
Wasco, California, and associated buildings and equipment to a private
investment group in California. The Company has agreed to provide certain
transitional services, including agricultural and horticultural services
through the end of June 2007, certain wholesale operational services during
2007, and certain direct marketing operational services and rose
fulfillment through the end of June 2008. . .

Donald and Glenda Hachenberger own several businesses in the
horticultural industry, including Southern Sun, a technology company
involved in plant propagation.

At the moment, no one knows exactly what this means for the rose industry in this country. It certainly fits the pattern of many other corporations in this country, but rose growers here did not tend to think of J&P as “just another company.”

Stayed tuned for future developments.