Bed Bath & Beyond has entered into a definitive merger agreement to buy the US-based specialty retail chain The Container Store in a transaction valued at $150m.

In a regulatory filing, the retailer said its newly created subsidiary, Falcon Merger Sub, will be merged into The Container Store, leaving the latter as a wholly owned unit of Bed Bath & Beyond.

The companies expect the deal to complete on or after 1 July 2026, subject to standard closing requirements and approvals from creditors.

Bed Bath & Beyond said consideration will be made largely through its common shares and senior convertible notes.

It plans to issue at least $54m of senior convertible notes, with the amount subject to adjustments linked to certain loan repayments.

Shares issued as part of the deal will be calculated using a $7 reference price.

The company also outlined leadership changes connected to the acquisition.

The Container Store chief financial officer, Brian LaRose, is set to take over as Bed Bath & Beyond CFO from 28 April.

In a letter to shareholders, CEO Marcus Lemonis said The Container Store’s more than 100 locations would be rebranded “The Container Store / Bed Bath and Beyond”, and that the combined business intends to broaden product range and home services as it develops what he described as an “Everything Home” ecosystem.

“With an average footprint of approximately 21,000ft² per store, these locations will feature a combination of merchandise across bed, bath, storage and organisation, kitchen, and entertaining. More importantly, they will significantly expand their existing home services offering”, Lemonis added.