Dive Brief:
- Bed Bath & Beyond Inc. will acquire Installed Right and SFV Services in a transaction consisting of Bed Bath & Beyond common stock, according to a Tuesday press release. The deal is expected to close toward the end of this month.
- Installed Right focused on the installation of products — such as closets, flooring, cabinetry and more — in residential and commercial spaces, per the release. SFV Services specializes in renovation, construction, demolition and more.
- Installed Right and SFV Services generated approximately $60 million in combined revenue in the most recent fiscal year.
Dive Insight:
Bed Bath & Beyond is embarking on another stock-dominant acquisition in an effort to build out a holistic homes services portfolio.
Over the past two months, the retailer announced the acquisition of The Container Store — which includes Elfa and Cabinet Works — and F9 Brands, which operates Cabinets To Go and Lumber Liquidators.
“The home services market remains highly fragmented, and we believe there is a significant opportunity to continue consolidating complementary businesses under the Beyond Home Services banner,” Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond Inc, said in a statement.
The purchase of Installed Right and SFV Services — founded and led by Mitch Rosen and his family — means Bed Bath & Beyond will issue about 7.2 million shares of common stock to the sellers.
Bed Bath & Beyond’s first quarter net revenue grew about 7% year over year to $248 million, per an April release. The retailer’s operating loss improved more than 20% to $18.2 million and net loss improved about 60% to $16.4 million.
The home retailer is in the process of retooling its retail footprint based on the acquisition of The Container Store.
Bed Bath & Beyond’s first co-branded store concept with The Container Store opened in Texas last month. The co-branded format brings together The Container Store’s organizational products and design services with Bed Bath & Beyond’s home merchandise.
