Bed Bath & Beyond to acquire Brand House Collective in $26.8M deal

Bed Bath & Beyond (BBBY) and The Brand House Collective (TBHC) announced that they have entered into a definitive merger agreement under which Bed Bath & Beyond will acquire The Brand House Collective. Based on the companies’ respective closing stock prices on November 21, the transaction implies an equity value of approximately $26.8M, which includes The Brand House Collective stock already held by Bed Bath & Beyond as previously disclosed and reflects an exchange ratio of 0.1993 shares of Bed Bath & Beyond common stock for each The Brand House Collective share. Under the terms of the merger agreement, unanimously approved by both boards, The Brand House Collective shareholders will receive 0.1993 shares of Bed Bath & Beyond common stock for each The Brand House Collective share. This exchange ratio reflects each company’s volume-weighted average price over the thirty trading days prior to November 20, and provides The Brand House Collective shareholders with meaningful ownership in the combined entity. In connection with the execution of the merger agreement, Bed Bath & Beyond has advanced $10M under an existing delayed draw term loan facility with The Brand House Collective to fund store conversions, accelerate omnichannel inventory procurement and support operations. Prior to and as a condition of the closing, the parties have agreed to use commercially reasonable efforts to amend or refinance The Brand House Collective’s existing credit facility with Bank of America. The transaction is expected to close in Q1 2026, subject to The Brand House Collective shareholder approval, including the affirmative vote of a majority of the votes cast by disinterested shareholders, and other customary closing conditions including lender consent from Bank of America.