Note 4 - Disposition

9 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note

4

– Disposition

On

March 15, 2017,

the Company and Ferrero International S.A., a Luxembourg corporation (“Ferrero”), entered into a Stock Purchase Agreement (the “Purchase Agreement”) pursuant to which Ferrero agreed to purchase from the Company all of the outstanding equity of Fannie

May

Confections Brands, Inc., including its subsidiaries, Fannie

May

Confections, Inc. and Harry London Candies, Inc. (“Fannie

May”)

for a total consideration of

$115.0

million in cash, subject to adjustment for seasonal working capital. On

May 30, 2017,

the Company closed on the transaction, and the working capital adjustment was finalized in

August 2017,

resulting in an

$8.5

million payment to Ferrero during the

first

quarter of fiscal

2018.

The associated gain of

$14.6

million was included within “Other (income) expense, net” in the

fourth

quarter of fiscal

2017.

The Company and Ferrero also entered into a transition services agreement, as amended, whereby the Company will provide certain post-closing services to Ferrero and Fannie

May

for a period of approximately

20

months, related to the business of Fannie

May,

and a commercial agreement with respect to the distribution of certain Ferrero and Fannie

May

products.