Dive Brief:
- Bed Bath & Beyond Inc. signed a letter of intent to acquire “the equity interests and substantially all assets” of Cabinets To Go and Lumber Liquidators owner and operator, F9 Brands Inc. The F9 Brands portfolio also includes Gracious Home / Thos. Baker and Southwind Building Products.
- The deal is expected to close after Bed Bath & Beyond’s annual meeting in May and is subject to customary closing measures, according to a Wednesday press release. The purchase price of about $150 million stems from $37 million in cash and about 16 million shares of Bed Bath & Beyond Inc. common stock at $7 per share.
- Current F9 Brands President and CEO Jason Delves will serve as chief executive officer of “Beyond Home Services,” a part of the Bed Bath & Beyond business that will include storage, closets, cabinets, flooring, installation, renovation and distribution.
Dive Insight:
The F9 Brands deal builds on Bed Bath & Beyond’s Thursday announcement that it will acquire The Container Store for $150 million in stock and convertible notes, which includes home-related brands Elfa and Closet Works.
“With the anticipated addition of Lumber Liquidators and Cabinets To Go to Elfa and Closet Works, Beyond Home Services is established with the brands, the capabilities, and the team to serve the homeowner from concept to completion,” Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond, said in a statement. “Each brand owns a distinct category — modular storage systems, custom closets, flooring, cabinets and countertops, carpet and hard surface flooring distribution — and together with our installation services and field sales organization, we can take the homeowner through the full lifecycle of a renovation, all under one platform.”
Bed Bath & Beyond plans to allow customers at the “Custom Spaces” section of The Container Store / Bed Bath and Beyond locations to access products and services from F9 Brands. The company plans to maintain stand-alone Cabinets To Go and Lumber Liquidators stores as well and will “leverage more than 2.2 million square feet of retail space to create full-service home project centers where customers can design, purchase, finance, and install complete home solutions,” per the release.
In the deal’s current terms, $40 million of financing from an existing lender will roll into the F9 Brands deal. Additionally, the seller and its management team are entitled to a $25 million one-time earnout if F9 Brands reaches $20 million in EBITDA within any of the next five years.
F9 Brands generated about $522 million in net delivered sales in fiscal year 2025 and has about $130 million of inventory on hand, per the press release.
With this, the Bed Bath & Beyond brand portfolio grows even larger. F9 Brands would join the Bed Bath & Beyond brand, Overstock.com, BuyBuy Baby and Kirkland’s, in addition to The Container Store, Elfa and Closet Works.
