Bed Bath & Beyond, Inc. (NYSE:BBBY) shares traded higher on Tuesday after the retailer unveiled new deal plans.
Bed Bath & Beyond agreed to acquire The Brand House Collective, Inc. (NASDAQ:TBHC) in an all-stock transaction valuing the target at about $26.8 million, using Nov. 21 closing prices.
The agreement gives Brand House investors 0.1993 Bed Bath & Beyond shares for each Brand House share.
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That exchange ratio reflects both companies' 30-day volume-weighted average prices through Nov. 20.
Bed Bath & Beyond already owns roughly 40% of Brand House's outstanding stock and has committed to supporting the merger.
The company also advanced $10 million under an existing delayed draw term loan to speed store conversions and omnichannel inventory builds.
Strategic Push Toward ‘Everything Home'
Executive Chairman Marcus Lemonis framed the acquisition as a key step toward a broader home-focused ecosystem.
"This acquisition is a big step in building a profitable, growth oriented Everything Home company. The power of this deal comes from a more efficient and productive engagement with the consumer, while extracting over $20 million in duplicate costs," said Lemonis.
After the transaction closes, Brand House Chief Executive Officer Amy Sullivan is expected to lead a new Beyond Retail Group division.
She will oversee merchandising, stores, e-commerce and customer experience across brands, including Bed Bath & Beyond, buybuy BABY, Overstock and Kirkland's Home.
Lemonis said Sullivan has driven the partnership over the past year and fits his standards for customer focus and operational discipline.
Customer Growth And Profitability Goals
"Our focus is clear: we will put the customer at the center of every decision, differentiate our brands with intention, and accelerate customer growth and lifetime value in ways that drive meaningful revenue and sustainable profitability," said Sullivan.
Management expects at least $20 million in annual cost eliminations as overlapping roles and systems disappear.
The combined company plans to reinvest those savings into high-conversion formats, digital upgrades and data-driven customer acquisition tools.
More than 40 underperforming or noncore locations are slated to close in early 2026 to support margin improvement and inventory efficiency.
The boards of both companies approved the merger unanimously. The deal still requires Brand House shareholder approval, including a majority of disinterested holders, and lender consent from Bank of America.
The companies said they aim to finalize the transaction in the first quarter of 2026.
BBBY Price Action: Bed Bath & Beyond shares were up 2.66% at $5.78 at the time of publication on Tuesday. The stock is near its 52-week low of $5.47, according to Benzinga Pro data. TBHC shares were down 9.02% at the time of publication.
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