A resurrected home decor retailer will expand its brick-and-mortar footprint with the acquisition of the parent company of The Container Store.
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Bed Bath & Beyond Inc. on Thursday announced plans to acquire the storage and organization retailer The Container Store Group Inc. for $150M and stock, The Wall Street Journal reported. The deal includes the acquisition of The Container Store’s Elfa and Closet Works brands.
BB&B will take over and rebrand 100 The Container Store locations into The Container/Bed Bath and Beyond, according to Bed Bath & Beyond CEO Marcus Lemonis’ April 2 letter to shareholders.
The deal includes $54M of notes converting to common stock at around $9.10 per share as well as Bed Bath & Beyond stock priced at $7 per share, according to the WSJ. The acquisition is expected to close in July.
Lemonis told shareholders that The Container Store acquisition will add to the firm’s three-pillar approach to the business in beefing up omnichannel retail that includes its Buybuy Baby, Kirkland's and Overstock brands.
“This transaction will fill critical gaps in both our retail and home services strategy, creating into our Everything Home ecosystem,” Lemonis said in the letter. “We believe we have assembled a lineup of brands that covers the most important categories that help turn a house into a home, with a clear mandate to make that process simple and affordable.”
This comes nearly three years after the original Bed Bath & Beyond, known for its ubiquitous 20%-off coupons that flooded consumer mailboxes, declared bankruptcy and subsequently shuttered all 480 of its stores and 120 of its Buybuy Baby stores.
The defunct retailer’s intellectual property, business data, rights to mobile apps and certain contracts were picked up a few months later by Overstock.com in June 2023 for $21.5M.
Lemonis said he expects the expanded company to save $40M annually with product efficiencies within 18 months of the integration.
Last May, the firm bought the intellectual property of the Kirkland's brand and changed its name to The Brand House Collective, shuttering some of Kirkland’s more than 310 locations. By August, Bed Bath & Beyond began to open retail stores once more, the first being in Tennessee.
The Container Store’s footprint gives Bed Bath & Beyond access to 2.2M SF of retail space in the U.S., with each store around 21K SF, according to the shareholder letter.
The expanded retailer also announced executive changes, including naming Amy Sullivan as president of the entire company, current Chief Marketing Officer Lisa Foley as chief operating officer and Brian LaRose as chief financial officer.
Current CFO Adrianne Lee is departing the company to assume the same position at cosmetics retailer Sally Beauty as of April 28, Chain Store Age reported.
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