TLDR
- Bed Bath & Beyond (BBBY) stock rose 6% after announcing a Letter of Intent to acquire F9 Brands, Inc.
- The deal carries a headline price of nearly $150 million, made up of $37 million in cash and roughly 16 million BBBY stock at $7.00 per share.
- F9 Brands owns Lumber Liquidators, Cabinets To Go, Gracious Home/Thos. Baker, and Southwind Building Products, and generated $522 million in net sales in fiscal 2025.
- The acquisition expands BBBY’s Beyond Home Services platform into cabinets, flooring, closets, and distribution.
- The deal is expected to close after BBBY’s annual shareholder meeting in May 2026, subject to due diligence and regulatory approvals.
Bed Bath & Beyond (BBBY) stock was trading up 6% on Wednesday following the announcement.
Bed Bath & Beyond, Inc. (BBBY) signed a Letter of Intent to acquire F9 Brands, Inc., a move that pushes the company deeper into the home services space. F9 Brands owns Lumber Liquidators, Cabinets To Go, Gracious Home/Thos. Baker, and Southwind Building Products.
The deal has a headline purchase price of nearly $150 million. That breaks down to $37 million in cash and approximately 16 million BBBY common stock priced at $7.00 per share, representing a transaction value of $107 million at current market prices.
There’s also an earnout component. The seller and its management team could receive an additional $25 million if F9 Brands hits $20 million in EBITDA in any of the next five calendar years.
F9 Brands generated approximately $522 million in net delivered sales in fiscal 2025 and currently holds around $130 million in inventory. An existing lender will roll $40 million of financing into the transaction.
The company says this is a deliberate pivot — away from traditional retail and toward higher-ticket, project-based categories like kitchens, flooring, and custom storage. The goal is to increase average transaction size and customer lifetime value.
Building Out Beyond Home Services
The acquisition slots into BBBY’s Beyond Home Services platform, which will now span storage, closets, cabinets, flooring, installation, renovation, and distribution.
Customers will be able to design, purchase, finance, and install complete home solutions, including through the Custom Spaces section of existing Container Store/Bed Bath and Beyond locations. The company has more than 2.2 million square feet of retail space to work with.
Marcus Lemonis, Executive Chairman and CEO, said the platform now has “the brands, the capabilities, and the team to serve the homeowner from concept to completion.”
Jason Delves will lead Beyond Home Services as CEO. He has run F9 Brands since 2019, growing it from $145 million to $522 million in sales through a mix of organic growth and acquisitions.
F9 Brands Growth and Deal Timeline
Prior to joining F9 Brands, Delves spent 18 years as President and CEO of a flooring manufacturer and distributor.
The transaction is also expected to benefit from activating BBBY’s existing customer base, improved purchasing power, and cost savings from operational efficiency.
The deal is expected to close after BBBY’s annual shareholder meeting in May 2026, pending customary due diligence, definitive documentation, and regulatory approvals.
BBBY already owns Bed Bath & Beyond, Overstock, buybuy BABY, Kirkland’s, and a blockchain asset portfolio.
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