Union, N.J. — Bed Bath & Beyond Inc. has entered into a definitive agreement to sell its remaining non-core banner Cost Plus World Market to Kingswood Capital Management, a Los Angeles-based private equity firm.
Additionally, the company approved a new $150 million accelerated share repurchase program (ASR), subject to market conditions, which will be in addition to the $225 million ASR announced on October 28, 2020. Both ASR programs are expected to be completed by no later than the end of the company’s fiscal year on February 27, 2021. The company has also expanded its total share repurchase program from up to $675 million to up to $825 million over the next 3 years by approving the new ASR program.
“We’ve taken deliberate steps throughout the year to streamline our portfolio and fortify our strategic focus in Home, Baby and Beauty & Wellness, and today’s announcement represents the conclusion of this work,” says Mark Tritton, Bed Bath & Beyond’s president and chief executive officer. “In all, we have unlocked significant value from the divestiture of five business concepts this year, and we have also meaningfully reduced our lease liability and overall debt.”
The Cost Plus World Market sale agreement includes 243 brick-and-mortar locations, the Cost Plus World Market digital business, two distribution facilities and a corporate office located in Alameda, Calif., and it is expected that Cost Plus World Market will continue to operate as a stand-alone retail brand. The transaction is subject to customary closing conditions. Advisors to Bed Bath & Beyond on this transaction included B. Riley Securities Inc. and Bryan Cave.
Bed Bath & Beyond Inc. and subsidiaries is an omnichannel retailer that sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.
SOURCE: Bed Bath & Beyond Inc.