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.
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.
Costs Plus shares were up to $21.89 on Wednesday afternoon, while Bed Bath & Beyond decreased slightly to $68.11.
"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.
Both have made a commitment to tender all their shares, which collectively compromise approximately a 26% interest in Cost Plus.