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Bed Bath & Beyond, Inc. & The Brand House Collective Announce Merger Agreement

November 24, 2025  by HFBusiness Staff in Business Strategy, Industry   

Based on the companies' respective closing stock prices on November 21, 2025, the transaction implies an equity value of approximately $26.8 million, which includes The Brand House Collective stock already held by Bed Bath & Beyond as previously disclosed and reflects an exchange ratio of 0.1993 shares of Bed Bath & Beyond common stock for each The Brand House Collective share.

"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," said Marcus Lemonis, Executive Chairman of Bed Bath & Beyond.

Lemonis continued, "The most valuable asset of this transaction is the talent and leadership that comes with it, giving our historical marketplace business a stronger product and consumer experience focus."

The combination brings together Bed Bath & Beyond's iconic home brands and digital reach with The Brand House Collective's proven merchant-led model and store-conversion discipline. Early conversions of Bed Bath & Beyond stores have delivered double-digit sales growth shortly after reopening, demonstrating strong customer response and validating the opportunity to scale a high-conversion format across the broader fleet.

Leadership to Drive Omni-Channel Retail Expansion

Upon closing, Amy Sullivan is expected to serve as Chief Executive Officer of the newly organized Division, Beyond Retail Group, overseeing all omni-channel retail operations, including merchandising, stores, digital commerce, and customer experience, across Bed Bath & Beyond's brands including but not limited to, Bed Bath & Beyond, buybuy BABY, Overstock and Kirkland's Home brands.

Mr. Lemonis commented, "Amy has played a central role in leading our strategic partnership over the past year. She is the right leader for this division because she understands the customer and will execute on my standard for customer focus, brand consistency, merchandising excellence, and operational rigor across the organization."

"Our combined entity strengthens our financial position and reaffirms our mandate to grow revenue and profit at the pace the market expects. 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," said Amy Sullivan CEO of The Brand House Collective.

Enterprise-Wide Efficiency and Cost Structure Improvement

The combined company expects to unlock at least $20 million in cost eliminations, driven by the removal of duplicated functions, overlapping systems, and operational inefficiencies across merchandising support, logistics, technology, and administrative structures. This cost-reduction plan is a core component of creating a more profitable platform and will allow the company to reinvest in growth initiatives, including high-conversion store formats, digital and omni-channel enhancements, advanced data-driven customer acquisition, and merchandising innovation.

In addition, more than 40 underperforming or non-strategic stores have been identified for closure in early 2026. These closures are intended to support bottom line improvement and inventory optimization as an element of the broader efficiency strategy.

Transaction Details

Under the terms of the merger agreement, unanimously approved by both boards, The Brand House Collective shareholders will receive 0.1993 shares of Bed Bath & Beyond common stock for each The Brand House Collective share. This exchange ratio reflects each company's volume-weighted average price over the thirty trading days prior to November 20, 2025, and provides The Brand House Collective shareholders with meaningful ownership in the combined entity.

In connection with the execution of the merger agreement, Bed Bath & Beyond has advanced $10 million under an existing delayed draw term loan facility with The Brand House Collective to fund store conversions, accelerate omnichannel inventory procurement and support operations.

Prior to and as a condition of the closing, the parties have agreed to use commercially reasonable efforts to amend or refinance The Brand House Collective's existing credit facility with Bank of America.

The transaction is expected to close in Q1 2026, subject to The Brand House Collective shareholder approval, including the affirmative vote of a majority of the votes cast by disinterested shareholders, and other customary closing conditions including lender consent from Bank of America. Bed Bath & Beyond presently holds approximately 40% of the outstanding shares of The Brand House Collective and under the merger agreement has agreed to support and vote to approve the proposed transaction.

Latham & Watkins LLP is serving as Bed Bath & Beyond's legal advisor. Investment banking firm Consensus (www.consensusadvisors.com) is serving as financial advisor to The Brand House Collective, and Bass, Berry & Sims PLC is serving as The Brand House Collective's legal advisor.