Bed Bath & Beyond has signed a letter of intent to acquire the assets of F9 Brands, owner of Lumber Liquidators, Cabinets To Go, Gracious Home/Thos. Baker, and Southwind Building Products.
The acquisition would advance Bed Bath & Beyond as a national, fully integrated home services platform, the company stated. The acquired operations would function as part of its Home Services business and would combine with the Elfa and Closet Works, which Bed Bath & Beyond would add its part of its planned purchase of The Container Store. The acquisition would expand Bed Bath & Beyond’s ability to serve consumers across the full lifecycle of homeownership from design and product selection to installation and financing.
As a result of the F9 acquisition, Bed Bath & Beyond would integrate leading brands across cabinets, flooring, closets and distribution functions with installation services, financing solutions and a growing retail footprint, positioning it to participate in larger, higher frequency home projects with increased customer lifetime volume, according to the company.
Jason Delves will serve as CEO of the Beyond Home Services business at Bed Bath & Beyond and join its executive leadership team. Delves has been president and CEO of F9 Brands since 2019. Under his leadership the business has grown organically and through acquisitions from $145 million to $522 million in sales, Bed Bath & Beyond noted.
The headline purchase price of the acquisition is $150 million comprising $37 million in cash and 16 million shares of Bed Bath & Beyond common stock at $7 per share, representing a transaction value of $107 million in the current market.
The seller and its management team would get 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, Bed Bath & Beyond maintained, adding that F9 Brands generated $522 million in net delivered sales in fiscal 2025 and has $130 million of inventory on hand. It also has $40 million of financing from an existing lender that will roll into the deal
Bed Bath & Beyond expects the F9 transaction to close after the company’s annual shareholder meeting in May. The planned acquisition marks a shift from traditional retail into higher-ticket, higher- margin, project-based categories including kitchens, flooring and custom storage, Bed Bath & Beyond indicated. By combining product, installation and financing into a single experience, the company intends to increase average transaction size, average transaction margin and customer lifetime value.
In addition to the standalone Cabinets To Go and Lumber Liquidators stores, Bed Bath & Beyond customers would be able to access F9 products and services through the Custom Spaces section of The Container Store/Bed Bath & Beyond format stores. The company plans to dedicate more than 2.2 million square feet of retail space to create full-service home project centers where customers can design, purchase, finance and install complete home solutions.
Bed Bath & Beyond expects value creation through higher-ticket categories, improved margins and distribution leverage. It anticipates additional long-term upside through sales growth driven by the activation of the existing Bed Bath & beyond customer base, enhanced margin performance resulting from increased purchasing power and meaningful cost savings achieved through improved operational efficiency
“With the anticipated addition of Lumber Liquidators and Cabinets To Go to Elfa and Closet Works, Beyond Home Services is established with the brands, the capabilities and the team to serve the homeowner from concept to completion,” said Marcus Lemonis, Bed Bath & Beyond executive chairman and CEO. “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.”
