Bed Bath & Beyond Inc. (NASDAQ:BBBY) announced that it is acquiring The Container Store, Elfa, and Closet Works as part of a broader expansion strategy.
The transaction is expected to add more than 100 retail locations to Bed Bath & Beyond’s portfolio, representing over 2.2 million square feet of retail space.
The Container Store locations, which average about 21,000 square feet, will be rebranded as “The Container Store / Bed Bath and Beyond.” These stores are set to offer an expanded range of merchandise, including bed and bath products, kitchenware, storage solutions, and entertaining goods.
The deal will be financed through a combination of common stock priced at $7.00 per share and convertible notes priced at approximately $9.10 per share. The company said it expects the acquisition to close in July 2026.
According to the company, the acquisitions align with its three-pillar strategy, which includes an omni-channel retail platform, a products and services segment, and a home services division. Elfa, based in Malmö, Sweden, and Closet Works, based in the Chicago area, are expected to play key roles in expanding the company’s home services capabilities, particularly in design, customization, and installation offerings.
In a letter to shareholders, Bed Bath & Beyond CEO Marcus Lemonis described the transaction as a “critical step” in the company’s next phase of growth. He noted that Bed Bath & Beyond had previously evaluated The Container Store but chose not to proceed at the time due to concerns about leadership and financial health. The business later entered bankruptcy.
Lemonis said the company now sees an opportunity to leverage The Container Store’s retail footprint and brand recognition while expanding its product assortment and service offerings. He also highlighted early signs of revenue growth and earnings improvement in the first quarter of 2026 compared with the same period in 2025.
The announcement follows the company’s completed acquisition of Kirkland’s, which operates more than 230 stores across the United States. Bed Bath & Beyond estimates that integrating Kirkland’s along with the newly announced acquisitions could generate at least $40 million in annual cost savings and operational efficiencies within 12 to 18 months.
Shares of Bed Bath & Beyond traded down 1.3% following the announcement at about $4.60.