Bed Bath & Beyond (BBBY) has signed a letter of intent to acquire home improvement group F9 Brands for almost $150m, as it looks to grow its Beyond Home Services platform.
The proposed deal covers a portfolio of F9 Brands businesses, including Cabinets To Go, Gracious Home / Thos. Baker and Southwind Building Products.
BBBY executive chairman and CEO Marcus Lemonis said: “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.”
The deal consideration breaks down into $37m in cash alongside 16 million shares of BBBY common stock, valued at $7 per share, placing the implied equity component at $107m.
An additional $25m earnout is available to the seller and its management team, contingent on F9 Brands delivering $20m in EBITDA [earnings before interest, taxes, depreciation, and amortisation] within any single calendar year over the following five-year period, subject to final terms.
The transaction also incorporates $40m in financing from an existing lender rolling into the deal.
F9 Brands posted approximately $522m in net delivered sales during fiscal 2025 and carries around $130m in inventory.
Under the combined structure, the two businesses would operate together beneath the Beyond Home Services banner, spanning cabinets, storage, installation and distribution.
As part of the planned integration, customers would be able to buy F9 Brands products through the Custom Spaces areas within The Container Store and Bed Bath & Beyond outlets.
Bed Bath & Beyond said it will “leverage more than 2.2 million square feet of retail space to create full-service home project centres where customers can design, purchase, finance, and install complete home solutions”.
Financing products, including credit cards, home equity lines of credit and credit union programmes, would also form part of the offering.
Jason Delves is expected to take on the role of CEO of Beyond Home Services and join BBBY's executive leadership team following completion of the transaction.
Completion is anticipated after the retailer's annual shareholder meeting in May 2026, pending due diligence, definitive agreements and any necessary regulatory clearances.
