Bed Bath & Beyond Inc. (NYSE:BBBY) shares rose about 6% on Wednesday after the company said it had signed a Letter of Intent to purchase F9 Brands, Inc., the parent company of several home improvement brands including Lumber Liquidators, Cabinets To Go, Gracious Home/Thos. Baker and Southwind Building Products.
The proposed deal values the acquisition at nearly $150 million. The consideration includes $37 million in cash along with roughly 16 million shares of BBBY common stock, priced at $7.00 per share. The seller and management team may also receive up to $25 million in additional earnout payments if F9 Brands reaches $20 million in EBITDA within the next five years.
F9 Brands reported around $522 million in net delivered sales for fiscal 2025 and currently holds approximately $130 million worth of inventory. The transaction also incorporates $40 million in financing from an existing lender, which will be carried into the deal.
Bed Bath & Beyond said the acquisition would broaden its Beyond Home Services platform, adding product categories such as cabinets, flooring and closets, as well as distribution capabilities alongside installation services and financing options. The company described the move as part of its transition away from traditional retail toward larger, project-based home improvement offerings.
Jason Delves, who has served as President and CEO of F9 Brands since 2019, will lead the expanded Beyond Home Services business as CEO. During his tenure, F9 Brands grew from about $145 million in revenue to $522 million in annual sales.
The companies expect the transaction to close after Bed Bath & Beyond’s annual shareholder meeting scheduled for May 2026, subject to standard due diligence, final agreements and regulatory approvals.