FTD buying parent of Shari’s Berries, ProFlowers

July 30--Flower and gifting company FTD has agreed to buy ProFlowers and its sister gifting brands for $430 million, creating a combined company with over $1 billion in revenue, the companies announced Wednesday.

Downers Grove-based FTD Companies and Englewood, Colo.-based Liberty Interactive Corporation, which owns the Provide Commerce collection of gifting brands that includes ProFlowers, Shari's Berries and Personal Creations, expect to complete the transaction by the end of 2014.

Liberty will receive 10.2 million shares of FTD common stock, representing 35 percent of the combined company, and $121 million in cash.

Combining the two companies, which each report more than $600 million in annual revenues, is expected to save them $25 million annually within 36 months of closing.

Provide Commerce's RedEnvelope business will be excluded from the transaction and retained by Liberty.

"This transaction provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers and our premier network of member florists," Robert Apatoff, president and CEO of FTD, said in a statement. "The combination of these businesses will expand the breadth of our brands, provide opportunities to further diversify our revenue streams and open up additional avenues for growth and innovation."

Apatoff, who joined FTD in 2008 after a career marketing beer, sneaker and insurance brands, will continue as president and CEO of FTD, the nation's oldest floral wire service with more than 1,400 member florists.

FTD will add four new directors to its board selected by Liberty. The companies said they expect no change to their independent operations while the transaction is completed and no immediate changes to operations after closing.

[email protected]

Follow @alexiaer Follow @chibreakingbiz

___

(c)2014 Chicago Tribune

Visit the Chicago Tribune at www.chicagotribune.com

Distributed by MCT Information Services