Bed Bath & Beyond Picks Up Cost Plus for $495M
Home-goods retailer Bed Bath & Beyond Inc said it will buy Oakland, California-based home furnishing chain Cost Plus Inc for nearly $495 million.
The $22-per-share acquisition, which is a 22 percent premium, is expected to close in Bed Bath & Beyond's second quarter, would be funded entirely by Union, New Jersey-based Bed Bath & Beyond with available cash.
The companies said on Wednesday that Red Mountain Capital Partners LLC and Stephens Investment Holdings LLC -- the two largest shareholders of Cost Plus -- have agreed to commit to tender all their shares to Bed Bath, accounting for about 26 percent in Cost Plus.
Bed Bath expects the deal to close during the second quarter and add to 2012 earnings. The company continues to expect a high single-digit to a low double-digit percentage increase in 2012 earnings.
Cost Plus shares soared 21 percent to $21.90 and Bed Bath shares slid 15 cents to $68.14 in early Nasdaq trading.