1-800-Flowers.com continues its expansion into the non-floral gift arena with the announcement it will acquire long-time Chicago-based candy manufacturer and retailer Fannie May Confections Brands Inc., for $85 million in cash. The acquisition is expected to close in May, the company says.

The deal builds on 1-800-Flowers.com’s acquisition of baked gifts provider Cheryl & Co. last year. During the past several years, as we have aggressively expanded our food, wine and gift basket business, we have seen chocolate and other confection items become an increasingly important part of our gift offering, says CEO Jim McCann.

Alpine Confections Inc. had acquired Fannie May chocolates in 2003 and has renamed itself Fannie May Confection Brands in anticipation of the planned acquisition by 1-800-Flowers.com. The confection company, which also includes the Harry London and Fanny Farmer candy brands, is expected to generate revenues of about $75 million during its current fiscal year.

The acquisition puts 1-800-Flowers.com in the candy manufacturing business. McCann notes, We expect this acquisition to enhance our candy category gross profit margins through extensive manufacturing and retail capabilities. The acquisition includes a 200,000-square-foot candy manufacturing facility in North Canton, OH, and 52 Fannie May retail stores in the Chicago area.

Fanny May senior management will remain in place, and the business, which will become a wholly owned subsidiary of 1-800-Flowers.com on closing, will continue to be based in Chicago. 1-800-Flowers.com plans to support Fannie May branded retail locations in the Chicago area.