In a bold move aimed at bolstering its position in the competitive online flower industry, Prestige Flowers, the Halifax-based florist, has merged with Flowerline, a Mansfield-based flower procurement and distribution company. The merger, which is supported by significant financial backing from alternative lender ThinCats, is expected to accelerate the growth of the combined entity, allowing it to better serve its expanding customer base.
Prestige Flowers, which was founded in 2013, has long been recognized for its high-quality, next-day delivery service, providing fresh flowers, hampers, and gift options to customers across the UK. The merger with Flowerline, which specializes in the packing, procurement, and distribution of flowers, marks a significant step in Prestige Flowers’ strategy to enhance its operational capabilities and maintain its competitive edge in the market.
A Decade of Success for Prestige Flowers
Since its launch, Prestige Flowers has built a reputation for delivering a diverse range of floral products. The company offers everything from traditional bouquets to more personalized options, including flowers with champagne or chocolates, as well as Christmas hampers. Notably, it also features unique offerings such as personalized voice and video messages accompanying some of its bouquets.
In the 12 months ending July 31, 2024, Prestige Flowers recorded a turnover of £41.3 million, which is slightly down from £41.4 million in the previous year. Despite concerns over consumer spending due to broader economic challenges, the company maintained its revenue level, showing resilience in a tough market.
More impressively, the company reported a pre-tax profit of £1.6 million, a remarkable turnaround from the £1.3 million loss it incurred the previous year. This positive result is attributed to the continued demand for online flower services, especially as consumers remain willing to spend on celebratory events and personal occasions. Additionally, the company’s commitment to sustainability has played a pivotal role in its success, as evidenced by its perfect 100/100 ethical score rating, a factor increasingly important to consumers making purchasing decisions.
The Role of ThinCats in the Merger
The merger with Flowerline has been made possible through the support of ThinCats, an alternative finance provider that specializes in supporting mid-sized SMEs. ThinCats has provided a significant capital injection to help fund the deal, which is expected to bring about operational synergies and enhance Prestige Flowers’ ability to deliver its products more efficiently.
According to Simon Crowther, CEO of Prestige Flowers, the merger represents a natural progression in the company’s growth strategy. “Prestige Flowers has always been driven by a passion for delivering outstanding quality and service to our customers, upholding the highest ethical standards,” Crowther said. “This merger with Flowerline strengthens our ability to source, pack, and distribute flowers and gifts with speed and care, enabling us to better meet the growing demand for our products.”
The backing from ThinCats provides the financial stability needed for the merged company to expand its operations and invest in further growth. ThinCats’ involvement in the deal underscores the confidence in the strategic direction of Prestige Flowers and Flowerline.
Strengthening the Supply Chain
The integration of Flowerline into the Prestige Flowers business will significantly enhance the combined entity’s supply chain capabilities. Flowerline’s expertise in sourcing and packing flowers, combined with Prestige Flowers’ strong customer base and established brand, will allow the new entity to streamline its operations, improve delivery speed, and offer even greater value to customers.
Ben Peacock, partner at Park Place, who advised on the deal, emphasized the strength of both companies. “Prestige Flowers and Flowerline are hugely impressive businesses in their own right, and having worked more closely in recent years, the idea of merging the businesses became compelling for the shareholders. Together, they form a powerful combination with strong operational synergies.”
The partnership between the two companies also represents a major boost to the UK floral industry, as it enables the merged entity to serve a broader range of customers with a faster, more efficient service. With a combined turnover of over £40 million and the ability to distribute more than one million bouquets annually, the new company is poised to continue its growth trajectory in the coming years.
Legal and Tax Advice
The merger and subsequent fundraising round were supported by a team of legal and financial advisors who played a crucial role in ensuring the success of the deal. A multi-disciplinary team from Squire Patton Boggs, including corporate partners David Milne and Paul Mann, along with corporate director Rebecca Holden and banking partner Tom Telford, provided legal advice on the merger and fundraising activities.
Jon Robinson of Parisi Tax offered valuable tax advice, while Clarion provided legal counsel to ThinCats, further solidifying the legal and financial framework for the transaction.
A Bright Future Ahead
With the merger now complete, Prestige Flowers is well-positioned to capitalize on the growing demand for online flower delivery services. The company’s focus on quality, sustainability, and customer service will continue to be central to its strategy as it expands its operations and strengthens its market position.
As the floral industry continues to evolve, the demand for personalized, high-quality floral arrangements is expected to remain strong. Through its collaboration with Flowerline and financial backing from ThinCats, Prestige Flowers is set to meet these demands head-on, offering a wide range of products and services that cater to both individual customers and corporate clients.
Looking ahead, Simon Crowther remains optimistic about the future of the company. “This merger is a significant milestone in the development of Prestige Flowers,” he says. “It’s an exciting time for our team, and we look forward to continuing to serve our customers with the same passion and commitment that has defined us over the past decade.”
With a strengthened supply chain, improved operational efficiencies, and increased capacity to deliver more bouquets nationwide, Prestige Flowers is set to continue blooming in the years to come. The merger with Flowerline marks not just a new chapter in the company’s growth story, but also a broader evolution of the UK floral market, as the demand for sustainable, high-quality, and personalized floral gifts continues to rise.
Related topics：
