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Additional Information
Market: NASDAQ
Sector: Retailers
EPIC: BBBY
Latest Price: 67.35  (-2.55% Descending)
52-week High: 74.72
52-week Low: 54.91
Market Cap: 14,820.00M
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Bed Bath & Beyond
www.bedbathandbeyond.com

Bed Bath & Beyond Inc., along with its subsidiaries, is a chain of retail stores. The Company sells an assortment of domestics merchandise and home furnishings, which include food, giftware, health and beauty care items, and infant and toddler merchandise.

Full Bed Bath & Beyond profile here
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Bed Bath & Beyond to buy Cost Plus in $495 mln deal

9th May 2012, 3:31 pm by Erin Sugar
Bed Bath & Beyond to buy Cost Plus in $495 mln deal

Bed Bath & Beyond (NASDAQ:BBBY) said Wednesday that it has struck a deal to buy Cost Plus (NASDAQ:CPWM) in an all cash transaction for $495 million, in an effort to expand its specialty food departments.

Cost Plus and Bed Bath & Beyond were, under a joint venture, testing a specialty food department at some Bed Bath & Beyond stores for the past year and a half.

The $22 per share price for Cost Plus represents a 22 percent premium from Cost Plus' closing stock price on Tuesday. Cost Plus currently has roughly 22.5 million shares outstanding.

Costs Plus shares were up to $21.89 on Wednesday afternoon, while Bed Bath & Beyond decreased slightly to $68.11.

"We are thrilled about the prospects of welcoming the Cost Plus team and their customers and vendors to the Bed Bath & Beyond family," Bed Bath and Beyond’s CEO Steven H. Temares said in a statement.

"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."

The deal, which is expected to close during Bed Bath & Beyond’s second quarter subject to customary conditions, is expected to be slightly accretive to the company's net earnings for 2012, after transaction and integration costs.

Both companies' boards have approved the deal.

Retail chain Bed Bath & Beyond sells a wide assortment of home furnishings and domestic merchandise. In its most recent fiscal year, the company reported a 25 percent increase in 2011 net income and an 8 percent rise in revenue to $9.5 billion.

California-based Cost Plus is a home furnishing and entertainment products retailer.

Cost Plus’ CEO Barry J. Feld said the acquisition will offer immediate value to shareholders.

Bed Bath & Beyond said it has already entered into agreements with Cost Plus’ two largest shareholders, Red Mountain Capital Partners, and Stephens Investment Holdings.

Both have made a commitment to tender all their shares, which collectively compromise approximately a 26% interest in Cost Plus.

No investment advice


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