Bed Bath & Beyond Inc. is wrapping up its transformation aimed at focusing on its core businesses, agreeing to sell Cost Plus World Market to a private equity firm. The deal represents the fifth — and final — noncore unit Bed Bath is selling as part of its transformation.
Financial terms of the definitive agreement with Kingswood Capital Management, based in Los Angeles, were not disclosed. The deal includes 243 brick-and-mortar locations, as well as the online business, two distribution facilities and a California-based corporate office.
“We’ve taken deliberate steps throughout the year to streamline our portfolio and fortify our strategic focus in Home, Baby and Beauty & Wellness, and today’s announcement represents the conclusion of this work,” CEO and President Mark Tritton said in a prepared statement. “In all, we have unlocked significant value from the divestiture of five business concepts this year, and we have also meaningfully reduced our lease liability and overall debt.”
CPWM is expected to continue to operate as a standalone brand. The transaction is expected to close before the end of the Union-based retailer’s fiscal year, at the end of February, subject to customary approvals and conditions.
Bed Bath also announced a $150 million accelerated share repurchase program, adding to a previously announced $225 million effort. Both are expected to be completed by the end of the company’s fiscal year, and will be funded with existing cash.
B. Riley Securities Inc. and Bryan Cave served as advisers to Bed Bath on the CPWM transaction.