Bed Bath & Beyond Acquires Cost Plus for $495M
Bed Bath & Beyond has acquired and will merge with Cost Plus, a U.S. retailer of casual home furnishings and entertainment products for $495 million, according to Reuters. The retailer operates more than 250 stores under the names World Market, Cost Plus World Market, Cost Plus Imports and World Market Stores in 30 U.S. states. Bed Bath & Beyond has also entered into agreements with Red Mountain Capital Partners LLC and Stephens Investment Holdings LLC, the two largest shareholders of Cost Plus.
"We are thrilled about the prospects of welcoming the Cost Plus team and their customers and vendors to the Bed Bath & Beyond family," said Steven Temares, CEO for Bed Bath & Beyond. "Through the combination of the highly talented Cost Plus organization with our own dedicated associates, we expect to be able to do even more for, and with, our collective customers."
The acquisition is expected to close during Bed Bath & Beyond's second quarter and is expected to contribute to net earnings per diluted share for fiscal 2012 after transaction and integration costs. Cost Plus will continue to be headquartered in Oakland, California following the transaction.
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