1-800-Flowers.com Buys The Children's Group

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Foster & Gallagher has sold The Children's Group, a direct marketer of children's gifts, to 1-800-Flowers.com for an undisclosed amount.

The acquisition gives 1-800-Flowers.com a database of more than 2 million customers and a 200,000-square-foot distribution center in Vandalia, OH. Last year The Children's Group reported approximately $30 million in revenues.

Jim McCann, CEO of 1-800-Flowers.com, said the distribution center fills a need that the company had foreseen as part of its growth plan.

"As our sales of non-floral gifts continue to grow, we knew that we would need additional distribution capacity," he said. "This asset, that comes as part of The Children's Group acquisition, fills that need and saves us from having to expend capital to build a new facility a year or two down the road."

The company consists of two brands: HeartSong, which specializes in wood and natural-material toys as well as educational crafts and books; and Magic Cabin Dolls, which sells natural-fiber soft dolls, knits and accessories. Both brands target gift giving for children age 3 to 12.

Peter G. Rice, CEO of Plow & Hearth -- a subsidiary of 1-800-Flowers.com -- will oversee the HeartSong and Magic Cabin Dolls businesses.


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