Bed Bath & Beyond to acquire substainally all assets of F9 Brands for $150M

Bed Bath & Beyond has signed a Letter of Intent to acquire the equity interests and substantially all assets of F9 Brands, which owns and operates Cabinets To Go, Lumber Liquidators, Gracious Home / Thos. Baker, and Southwind Building Products. This transaction will represent an additional step in further building a national, fully integrated home services platform under Beyond Home Services. Beyond Home Services will combine category leading brands across cabinets, flooring, closets, and distribution with installation services, financing solutions, and a growing retail footprint, positioning Bed Bath & Beyond to participate in larger, higher frequency home projects with increased customer lifetime value. Transaction Highlights: Beyond Home Services will include distinct category leaders across storage, closets, cabinets, flooring, installation, renovation, and distribution; Headline purchase price of nearly $150M comprised of $37M in cash and approximately 16M shares of BBBY common stock at $7.00 per share, representing a transaction value of $107M at the current market price; Seller and its management team will be entitled to a one-time earnout of $25M if F9 Brands achieves $20M in EBITDA in any of the next five calendar years, subject to negotiation of final terms; F9 Brands generated approximately $522M in net delivered sales in fiscal 2025; F9 Brands currently has approximately $130M of inventory on hand; $40M of financing from existing lender will roll into the deal; Integrated financing solutions including credit cards, HELOC, and credit union programs; Jason Delves to serve as CEO of Beyond Home Services. Transaction expected to close after the Company’s annual shareholder meeting in May 2026 and customary due diligence, definitive documentation, and regulatory approvals if needed. This anticipated acquisition represents a shift from traditional retail into higher ticket, higher margin, project-based categories including kitchens, flooring, and custom storage. By combining product, installation, and financing into a single experience, the Company believes it can increase average transaction size, average transaction margin, and customer lifetime value.