Hoffmann family to acquire another Naples business - Southern Business Review


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Tuesday, March 12, 2019

Hoffmann family to acquire another Naples business

The Hoffmann family continues to execute on a five-year plan to grow its presence in the hospitality industry in Naples.

Through its private office Osprey Capital LLC, the family has plans to buy Kaleidoscope Floral, a local floral design and event planning business run by husband and wife Sean and Melissa Stevenson.  

The deal is expected to close this week.

In case you missed it: Husband and wife floral design team brings fresh, creative style to Naples

The planned purchase follows a handful of others involved in the local hospitality sector including WeddingLux Event Planning and Design, EventLux Social Celebration Planning and Design, GlobalWorks Events and Destination Management, Naples Transportation & Tours and Naples Princess Cruises.

The Stevensons, who are in their early 30s, have seen their business blossom since founding it three years ago in Naples. 

The couple worked out of their home for a couple of years before opening a stylish design studio off 14th Street North between Goodlette-Frank Road and U.S. 41.  

The Stevensons get much of their business through referrals from wedding planners and photographers.

Kaleidoscope has also attracted a lot of business through its Instagram account, @Kaleidoscopefloral, which has more than 4,000 followers.

'A really good fit' 

In a news release, Sean Stevenson said the Hoffmann family "truly understands our creative approach." 

The acquisition and partnership with the Hoffmanns, he said, will give him and his wife "the resources we need to grow this business" in the way they've always imagined.

The Stevensons were exploring growth options even before the Hoffmanns came knocking with an offer they couldn't refuse. 

"We had been planning on the next steps of the growth of our business. They kind of came along at a time that was kind of perfect for us," said Sean Stevenson in a phone interview.

After a long sit-down meeting, the Stevensons felt the Hoffmanns had the same ambitions and goals as they did.

"It just seemed like a really good fit," Stevenson said. "They had the same ideas we had — the same ideas about growth and the same ideas about business in general, in what we wanted to do and accomplish."

More: Hoffmann family buys local businesses, creates new marketing company

David Hoffmann, chairman of Hoffmann Commercial Real Estate and the founder of Osprey Capital, a private equity company based in Illinois, said his family's event companies in Naples were buying so many flowers that it made a lot of sense to purchase an upscale florist — and Kaleidoscope rose to the top of the list of choices for many reasons, including its impressive growth in such a short time.

"They are doubling in sales every year," Hoffmann said. "We think now they will quadruple just because of how many flowers we're involved in with our event planning businesses."  

The Hoffmanns' event planning business is only expected to grow.

"We are trying to round out our hospitality business in Naples," Hoffmann said. "We want to make Naples the Disneyland for adults. This is just part of it." 

The Hoffmanns don't just have their eye on Naples.

The family has signed a letter of intent to buy another event planning business on Florida's other coast in Palm Beach, Hoffmann said.

A flower bar

Turning his attention back to Naples, Hoffmann said plans to expand Kaleidoscope's services are already in play. Plans include opening a retail store on Fifth Avenue South to serve the local market with flower deliveries and a flower bar so customers can walk in and make their own arrangements from a selection of fresh flowers.

Kaleidoscope has supplied flowers for events and other special occasions across Florida and in other states, such as North Carolina and Georgia.

"They're already national," Hoffmann said.

About 90 percent of the company's business comes from Instagram, the internet and social media, he said, which is impressive.

"Plus, their product is good," Hoffmann said.

More: Hoffmanns have grand plans for downtown Naples; vision includes theater, bowling alley

Flowers you don't see every day

The Stevensons bring in flowers from all over the world. Most of the staples come from South America, but the couple also brings in product from Japan, Italy and Holland. 

"We get specialized varieties," he said. "We get a lot more unique flowers that people may not see every day, which I think is a draw to our aesthetic."

The Hoffmann family will continue to invest in local businesses, especially in the hospitality sector. 

The family plans to purchase Coral Cay Adventure Golf, a miniature golf course off U.S. 41 East, near Palm Street. The transaction is expected to close May 1. 

"We plan to make some improvements, some changes and some new offerings of mini golf," Hoffmann said. 

Meanwhile, the family is negotiating to purchase yet another commercial building on Fifth Avenue South. 

"It's right in the heart of Fifth," Hoffmann said. "We do not officially have it under contract yet, but we're pretty close and I think we'll get it done."

Since negotiations are ongoing, he didn't want to identify the building, only saying that it's well-known and so are the tenants inside.

Looking ahead, there are plans to rebrand Osprey Capital to the Hoffmann Family of Cos. in Florida. Although it's well known in places such as New York and California, Osprey isn't such a familiar name here.

Hoffmann still has a long to-do list, but he can check one item off it. 

The family had been scouting sites for an upscale movie theater downtown, but now that one is planned at the Coastland Center mall that's close enough, Hoffmann said.

"I thought this is great news because I don't have to do it now," he said.  

Hoffmann Commercial Real Estate is already the largest owner of commercial real estate in Naples, with more than 20 properties valued at more than $300 million.

"We don't stop here at Hoffmann Properties. No rest," Hoffmann said.