Bed Bath & Beyond, Inc. (BBBY) shares climbed on Tuesday after the retailer announced plans to consolidate its home goods empire through a strategic acquisition.
The company agreed to acquire The Brand House Collective, Inc. (TBHC) in an all-stock deal valued at approximately $26.8 million based on closing prices from November 21. Under the terms, Brand House shareholders will receive 0.1993 Bed Bath & Beyond shares for each share they own.
That exchange ratio comes from both companies' 30-day volume-weighted average prices through November 20, which seems designed to smooth out any recent volatility and give everyone a fair shake at the negotiating table.
Already In Business Together
This isn't exactly a marriage between strangers. Bed Bath & Beyond already owns roughly 40 percent of Brand House's outstanding stock and has committed to supporting the merger. The company even sweetened the pot by advancing $10 million under an existing delayed draw term loan to speed up store conversions and build out omnichannel inventory.
Executive Chairman Marcus Lemonis positioned the acquisition as critical to building what he calls an "Everything Home" platform. The real prize here isn't just combining stores—it's eliminating redundancy and focusing resources on what actually works.
"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," Lemonis said.
New Leadership Structure
Once the deal closes, Brand House Chief Executive Officer Amy Sullivan is expected to run a newly created Beyond Retail Group division. She'll oversee merchandising, stores, e-commerce, and customer experience across the entire portfolio: Bed Bath & Beyond, buybuy BABY, Overstock, and Kirkland's Home.
Lemonis praised Sullivan's work building the partnership over the past year, saying she meets his standards for customer focus and operational discipline. Translation: she knows how to run tight ship in a brutally competitive retail environment.
The Cost-Cutting Math
"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," Sullivan said.
Management expects to slash at least $20 million annually by eliminating overlapping roles and redundant systems. Those aren't just theoretical savings—the combined company plans to reinvest the money into high-conversion store formats, digital infrastructure upgrades, and data-driven customer acquisition tools.
There's also a reckoning coming for underperforming locations. More than 40 stores that aren't pulling their weight will close in early 2026, part of a broader push to improve margins and streamline inventory management.
What Happens Next
Both boards approved the merger unanimously, but the deal still needs Brand House shareholder approval, including a majority of disinterested holders who don't have conflicting interests. It also requires lender consent from Bank of America, which holds the purse strings on existing credit facilities.
The companies expect to finalize everything in the first quarter of 2026, assuming regulatory and shareholder hurdles clear smoothly.
Price Action: Bed Bath & Beyond shares were up 2.66 percent at $5.78 at the time of publication on Tuesday. The stock is trading near its 52-week low of $5.47. TBHC shares were down 9.02 percent at the time of publication.