FLWS - Research - 1-800-Flowers.com (FLWS) - Gets Into A Personal Space

Adds A Personal Touch. The company announces plans to purchase PersonalizationMall.com from Bed, Bath & Beyond for $242 million. The transaction is expected to close in early April, 2020. We view the acquisition favorably as it expands its everyday gifting platform, further distances itself from its peers that a narrow gifting offering. Reasonable purchase price. The purchase price is estimated to be 1.7 times trailing revenues and 10 times estimated fiscal 2021 EBITDA. a fair price for a business growing revenues in the high-single digit to low-double digits and for cash flow margins in the 15% range. Tax benefits bring the purchase price to low 8 times cash flow. Read More >>