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1-800-Flowers.com announced on May 1 it has acquired DesignPac Gifts for $36 million. DesignPac Gifts, which recorded $50 million in sales during 2007, designs and assembles gourmet gift baskets, gourmet food gift towers, and gift sets.

Carle Place, NY-based 1-800-Flowers.com, which recorded $912.6 million in sales for fiscal 2007, includes the HearthSong, Plow & Hearth, The Popcorn Factory, Magic Cabin Dolls, and Cheryl & Co. catalogs.

According to terms of the deal, Melrose Park, IL-based DesignPac will retain its senior management and become a wholly owned subsidiary of 1-800-Flowers.com. Chris Shannon, managing director for investment firm Berkery, Noyes & Co., says the acquisition is the perfect fit and “complements both companies.”

Jim McCann, CEO of 1-800-Flowers.com, agrees. He said in a release:
 “We believe DesignPac’s unique capabilities in the design and production of gift baskets and gift sets can be leveraged across all of our gourmet food brands to enhance our product offering and further expand our multichannel retailing strategy.”

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