Quickly following its acquisition of The Container Store, Bed Bath & Beyond Inc. has announced it will acquire Lumber Liquidators, Cabinets To Go and other F9 Brands’ assets.
Bed Bath & Beyond expects the deal to acquire The Container Store, which it announced April 2, to close in July. The $150 million deal includes the organization chain, along with brands Elfa and Closet Works.
Currently, Bed Bath & Beyond Inc. owns its now-namesake brand Bed Bath & Beyond, as well as Overstock, Buy Buy Baby and Kirkland’s. It also operates a blockchain asset portfolio.
In October 2024, Beyond and The Container Store announced a partnership. The former would invest $40 million into the latter. Then, in November that year, Beyond said that the deal might not happen. In December 2024, The Container Store filed for Chapter 11 bankruptcy.
Now, Bed Bath & Beyond has signed a letter of intent to acquire the “the equity interests and substantially all assets of F9 Brands, Inc.” The former announced April 8 that it signed the letter of intent.
In the announcement, Bed Bath & Beyond said the acquisition of F9 Brands would represent “a shift from traditional retail into higher-ticket, higher-margin, project-based categories including kitchens, flooring and custom storage.” Bed Bath & Beyond said it believes it can increase its average transaction size and margin by combining product, installation and financing into one experience.
Bed Bath & Beyond ranks No. 71 in the Top 2000 Database. The database ranks North America’s largest online retailers by their annual ecommerce sales and more.
Bed Bath & Beyond acquisition of F9 Brands
Through the letter of intent, Bed Bath & Beyond said it plans to acquire assets of F9 Brands, which include:
- Cabinets To Go
- Lumber Liquidators
- Gracious Home / Thos. Baker
- Southwind Building Products
Cabinets To Go has more than 100 stores nationwide. Lumber Liquidators is a specialty retailer for waterproof and hardwood flooring that has more than 200 stores nationwide. Southwind Building Products supplies flooring and building materials to 4,400 independent retailers and contractors across the United States.
Lumber Liquidators ranks No. 410 in the Top 2000 Database, falling under LL Flooring.
“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,” said Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond, in the announcement.
Fleshing out Beyond Home Services
Bed Bath & Beyond said the acquisition “will represent an additional step in further building a national, fully integrated home services platform under Beyond Home Services. We believe these assets, including Elfa and Closet Works, will expand the Company’s ability to serve customers across the full lifecycle of homeownership, from design and product selection to installation and financing.”
Bed Bath & Beyond said its “Beyond Home Services” will combine brands across cabinets, flooring and closets. It will also include distribution with installation services, as well as financing solutions, according to the retailer.
Jason Delves will serve as CEO of Beyond Home Services, according to the announcement. Delves has been president and CEO of F9 Brands since 2019. The business has more than tripled its sales during his time as CEO, through both organic growth and acquisitions, according to the announcement. Delves also was president and CEO of a flooring manufacturer and distributor for 18 years.
Bed Bath & Beyond said the changes will position it “to participate in larger, higher frequency home projects with increased customer lifetime value.”
About the Bed Bath & Beyond deal with F9 Brands
Bed Bath & Beyond said a highlight of the deal would be that Beyond Home Services will include “distinct category leaders.” Those categories:
- Storage
- Closets
- Cabinets
- Flooring
- Installation
- Renovation
- Distribution
Bed Bath & Beyond said the purchase price for F9 Brands would be “nearly $150 million.” The deal for F9 Brands would include $37 million in cash and about 16 million shares of Bed Bath & Beyond common stock at $7 per share. The latter portion represents a transaction value of $107 million, according to Bed Bath & Beyond.
The deal also will include $40 million in financing from an existing lender. In addition, the deal will include integrated financing solutions including credit cards, Home Equity Line of Credit (HELOC) and credit union programs.
Bed Bath & Beyond said the seller and its management team will be entitled to a one-time earnout of $25 million if F9 Brands achieves $20 million in EBITDA in any of the next five calendar years. That payout is subject to negotiation of final terms, the retailer said.
F9 Brands generated about $522 million in net delivered sales in its fiscal 2025, according to the announcement with Bed Bath & Beyond. Currently, F9 Brands has about $130 million of inventory on hand.
Bed Bath & Beyond said it expects to close the transaction after an annual shareholder meeting in May 2026, as well as following “customary due diligence, definitive documentation, and regulatory approvals if needed.”
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