Harry and David Holdings Inc. have announced the terms of their initial public stock offering. On Sept. 12, Harry and David, which operates Bear Creek, No. 81 in the Internet Retailer Top 400 Guide to Retail Web Sites, announced that shares of its IPO would be priced between $13 and $15 per share which could raise as much as $125 million in new working capital.
The exact number of shares to be released has yet to be determined. With the proceeds, the company will grow its Internet business. “Through our Internet channel, we intend to increase our market share of last minute gift-giving sales and enhance our brand awareness,” the company says in its IPO filing with the Securities and Exchange Commission. “We intend to expand our Internet joint marketing agreements with strategic online partners to acquire new customers and to continue to leverage e-mail communications to increase sales to existing customers. We also intend to continue to leverage the Internet channel to cost effectively manage inventory and to test and evaluate new product categories.”
Harry and David Direct Marketing segment net sales increased $1.9 million, or 0.6%, to $314.1 million in fiscal 2004 from $312.2 million in fiscal 2003.
The company total web sales of about $90 million in 2004.