Bed, Bath & Beyond to acquire Cost Plus
HTT Staff -- Home Textiles Today, 5/9/2012 10:22:54 AM
Union, N.J. - Bed Bath & Beyond announced this morning it will acquire Cost Plus, the 259-unit home furnishings and lifestyle chain based in Oakland, Calif., for approximately $495 million.
Bed Bath has made a cash tender offer for all outstanding share of Cost Plus common stock at $22 per share. Bed Bath will fund the transaction with available cash.
Bed Bath & Beyond is the second largest retailer of home textiles in the U.S., with 2010 sales in the categories of $3.5 billion. HTT ranks Cost Plus as the 49th largest retailer of home textiles, with 2010 sales in the category of $46 million.
In December, Cost Plus acknowledged it was conducting a test with Bed Bath & Beyond, which carried some Cost Plus consumables in three Bed Bath stores.
Today's announcement did not specify whether Bed Bath will convert Cost Plus stores to its format or add the nameplate to its retail portfolio, which also includes buy buy Baby, Harmon, Harmon Face Values and The Christmas Tree Shops. Bed Bath also is a partner in a joint venture which operates retail stores in Mexico under the name "Home & More."
"Through the combination of the highly talented Cost Plus organization with our own dedicated associates, we expect to be able to do even more for, and with, our collective customers," said Steven Temares, ceo and member of Bed Bath & Beyond.
The acquisition is expected to close during Bed Bath & Beyond's fiscal second quarter. The retailer said it continues to model a high single digit to a low double digit percentage increase in net earnings per diluted share in fiscal 2012.
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