Interflora in budding flotation discussions
Florist network Interflora is considering selling out to a private equity firm in a move that would end decades of independence, it was reported today.
The company – which is owned by its member florists – is said to be considering a deal which would result in demutualisation and trigger windfall payments to its members.
But the plan could be derailed by angry florists worried that the management team want to enrich themselves at their expense, according to The Sunday Times.
To combat the risk of a revolt, chief executive Steve Richards is to undertake a tour persuading the 1,850 florists who make up the chain to incorporate the group and sell a majority stake to a private equity firm.
It is understood this would then lead to the flotation of the company.
A spokesman for the firm confirmed this was one option being considered but stressed that discussions were at an early stage.
He said: “Talks are at an exploratory stage at the moment. Incorporation is one option that is being considered but there is a long way to go yet.”
He confirmed that a 62-day “roadshow” would start in the next month to allow management to outline the options to members.
It is not yet known what value would be put on Interflora, which makes profits of about £2m (€2.98m) on sales of about £20m (€29.8m).
Interflora began its delivery service nearly 81 years ago and has always been independent.
Worldwide, some 58,000 florists deliver flowers to 140 countries across China, Russia, the US and Europe for the firm.
The company trades as Fleurop in parts of Europe, FTD in America, Canada and Japan, and Interflora in the UK and Republic of Ireland.
It is governed and run by a board of 13 directors, some of whom are member florists. Directors are elected by member florists at the AGM for a three-year term.
