Bed Bath & Beyond Grows Home-Services Arm

Bed Bath & Beyond Inc. (Murray, Utah) has unveiled its second major acquisition this month, signing a letter of intent to buy F9 Brands Inc. (Lawrenceburg, Tenn.) for $150 million in stock and cash. Privately held F9 owns and operates Cabinets To Go, Lumber Liquidators, Gracious Home/Thos. Baker and Southwind Building Products.

The deal represents the latest step by BB&B to build a national, fully integrated platform under its Beyond Home Services banner, the retailer said in a news release. The acquisition, expected to close later this year, represents a shift from traditional retail into higher ticket, higher margin, project-based categories including kitchens, flooring and custom storage, BB&B said.

“With the anticipated addition of Lumber Liquidators and Cabinets To Go with our existing Elfa and Closet Works units, Beyond Home Services is established with the brands, the capabilities and the team to serve the homeowner from concept to completion,” said Marcus Lemonis, BB&B’s Executive Chairman and CEO. “Each brand owns a distinct category—modular storage systems, custom closets, flooring, cabinets and countertops, carpet and hard surface flooring distribution—and together with our installation services and field sales organization, we can take the homeowner through the full lifecycle of a renovation, all under one platform.”

As mentioned earlier, this marks BB&B’s second big buy in April, coming on the heels of it disclosing plans to acquire The Container Store and eventually operate sites bearing both brands’ names.