Bed Bath & Beyond Buying Lumber Liquidators' Parent Company
Bed Bath & Beyond Inc. is on a buying binge.
The company, after revealing last week it is acquiring The Container Store’s parent company, announced Wednesday it is planning to buy a suite of home improvement brands.
The publicly traded company said it is under a preliminary agreement to buy F9 Brands Inc., which owns and operates Cabinets To Go, Lumber Liquidators, Gracious Home/Thos. Baker and Southwind Building Products.
The buyer said the purchase price equates to “nearly” $150M, including $37M in cash and 16 million in shares, which equates to $107M.
Bed Bath & Beyond Inc., which trades as BBBY, owns retailers Bed Bath & Beyond, Kirkland, Overstock and Buy Buy Baby.
The new F9 brands, along with Elfa and Closet Works, which BBBY is absorbing through its Container Store acquisition, would be part of the company's Beyond Home Services arm. Jason Delves, F9’s president and CEO, would serve as CEO for that arm.
In a release, BBBY CEO Marcus Lemonis said the acquisition of F9 Brands, as well as Elfa and Closet Works, means Beyond Home Services will be able to “take the homeowner through the full lifecycle of a renovation, all under one platform.”
The release also said the acquisition will help position the company to increase transaction sizes and margins and customer lifetime value.
Lumber Liquidators has more than 200 stores across the U.S., and Cabinets To Go has over 100. While they will continue to operate their own retail stores, their products will also be showcased at The Container Store and Bed Bath & Beyond stores, the release said.
Lemonis said in August that BBBY had plans to open more than 300 Bed Bath & Beyond stores over the next 24 months.
In 2023, the company filed for bankruptcy and closed all 480 of its Bed Bath & Beyond stores and 120 of its Buy Buy Baby stores and sold its intellectual property, business data, certain contracts and mobile app rights to Overstock.
One of the companies BBBY is acquiring through F9 Brands has gone through bankruptcy itself. LL Flooring filed for bankruptcy in August 2024. Just two months later, F9 agreed to purchase 219 of its stores and main distribution center, while it closed many other stores. F9 is led by the founder and former CEO of Lumber Liquidators, Tom Sullivan.
