Home Services Expansion as Bed Bath & Beyond Buys F9 Brands

Home services expansion as Bed Bath & Beyond acquires F9 Brands, owner of Lumber Liquidators, boosting its national platform.
Home services expansion as Bed Bath & Beyond acquires F9 Brands, owner of Lumber Liquidators, boosting its national platform.
  • Bed Bath & Beyond acquires F9 Brands, parent of Lumber Liquidators, for $150M.
  • Deal includes $37M in cash, 16M shares of stock, and $40M in rolled-over financing.
  • Acquisition follows recent $150M purchase of The Container Store.
  • Transaction expands Beyond Home Services national platform across flooring, cabinets, and custom storage solutions.
Key Takeaways

Strategic Growth Moves

CSTA reports that Bed Bath & Beyond is advancing its national expansion strategy with the acquisition of F9 Brands for nearly $150M. F9 Brands owns the Lumber Liquidators and Cabinets To Go retail banners, along with Gracious Home / Thos. Baker and Southwind Building Products.

The deal structure includes $37M in cash, approximately 16M Bed Bath & Beyond shares valued at $107M, and $40M in continuing financing from an existing lender. This transaction comes on the heels of Bed Bath & Beyond’s $150M acquisition of The Container Store, reinforcing its commitment to building a comprehensive home services business.

Synergy Across Home Services

The acquisition aims to create synergies with The Container Store’s Elfa brand and Closet Works. It integrates cabinets, closets, flooring, and distribution services. The Beyond Home Services platform will support the full homeownership cycle. It covers design, selection, financing, and installation. This expansion comes as building material pricing remains under pressure, influencing project costs and margins across home improvement and renovation segments.

Customers can access F9 Brands’ offerings in the Custom Spaces section of combined retail locations. Standalone Cabinets To Go and Lumber Liquidators stores will continue operating. They will leverage over 2.2M SF of retail space for full-service project centers.

Financials and Leadership

F9 Brands reported $522M in net delivered sales in fiscal 2025 and holds $130M in inventory. The transaction includes potential for a $25M earnout if F9 Brands achieves $20M in EBITDA within five years. Jason Delves, CEO of F9 Brands, will become CEO of Beyond Home Services and join Bed Bath & Beyond’s executive team.

The sale is expected to close after the 2026 annual shareholder meeting, pending standard approvals and due diligence.

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