Summary:
- Bed Bath & Beyond signs letter of intent for F9 Brands
- Transaction valued at roughly $150 million including cash and stock
- F9 rang up roughly approximately $522 million in net sales last year
- By beefing up its home services offerings, BBB Inc. aims to boost average transaction and average margin sizes
Murray, Utah – Just days after announcing its acquisition of The Container Store, Bed Bath & Beyond Inc. has signed a letter of intent to acquire the assets F9 Brands Inc. – which comprise a broad portfolio of businesses in the building products, home improvement and luxury home décor industries.
F9 provides business management services to Cabinets To Go, Lumber Liquidators, Gracious Home / Thos. Baker, and Southwind Building Products. The company generated approximately $522 million in net delivered sales in fiscal 2025, according to BBB Inc. The enterprise has approximately $130 million in inventory on hand.
This transaction aims to build out BBB Inc.’s home services platform – Beyond Home Services. With the pending acquisition of Elfa and Closet Works announced last week, Beyond Home Services will combine category brands across cabinets, flooring, closets, and distribution with installation services, financing solutions, and a growing retail footprint.
Additional details:
The financials: The roughly $150 million purchase price consists of $37 million in cash and approximately 16 million shares of BBBY common stock at $7.00 per share, representing a transaction value of $107 million at the current market price. The deal includes $40 million of financing from F9’s existing lender.
The sweetener: The seller and its management team will be entitled to a one-time earnout of $25 million if F9 Brands achieves $20 million in EBITDA in any of the next five calendar years, subject to negotiation of final terms.
The leadership: Jason Davis, who has served as president and CEO of F9 brands since 2019, will become CEO of Beyond Home Services and join BBB Inc.’s executive leadership team.
The timeline: The transaction is expected to close after BBB Inc.’s annual shareholder meeting in May following the customary due diligence, definitive documentation, and regulatory approvals, if needed.
The strategy: Adding the F9 Brands businesses will shift Bed Bath & Beyond Inc. from traditional retailing 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 hopes to increase its average transaction size and average transaction margin.
“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,” said Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond Inc.
Today’s announcement did not touch on what the company plans to do with Gracious Home, the iconic New York luxury home goods retailer that now operates as a pure play e-commerce business.
Bed Bath & Beyond Inc. will announce its first quarter results on April 27 after the market closes.
