Bed Bath & Beyond Inc. said Tuesday it will sell its Christmas Tree Shops retail banner, its institutional Linen Holdings business, and a distribution center located in Florence for approximately $250 million.
The agreements are separate from one another, and in line with Bed Bath’s portfolio optimization. They potentially include the sale of additional non-core assets to further increase the Union-based retailer’s financial strength and enhance shareholder value.
“Today’s announcement builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the home, baby, beauty and wellness markets,” said Chief Executive Officer Mark Tritton in a prepared statement. “Customers are responding well to the introduction of our new omni-always services, and we will continue to invest in our digital-first experience with a customer-inspired assortment that makes it easy to feel at home with Bed Bath & Beyond.”
Bed Bath entered into a definitive agreement to sell Christmas Tree Shops to Handil Holdings LLC in Tampa, Fla., including all 80 brick-and-mortar Christmas Tree Shop locations and a Middleborough, Mass., distribution center.
Handil Holdings plans to continue operating Christmas Tree Shops as is.
An agreed-upon transition service agreement, following the close of the transaction, will ensure business continuity during the upcoming holiday season. The transaction is expected to close ahead of the holidays in November, subject to customary closing conditions.
The sale of Christmas Tree Shops was originally reported on in June.
Bed Bath also entered into a definitive agreement to sell its Linen Holdings business to The Linen Group LLC, an affiliate of Lion Equity Partners in Denver.
Linen Holdings will be merged with existing Lion Equity portfolio company Riegel Linen. It currently provides a broad selection of linen, terry, amenities, case goods and apparel to world-class businesses in the global hospitality and health care industries.
Linen Holdings’ sale is expected to close in October subject to customary closing conditions.
Bed Bath’s agreement to sell its distribution center in Florence to an institutional buyer aligns with its streamlining and modernization of its distribution and omni-fulfillment capabilities as part of an ongoing review of real estate assets. Bed Bath signed a lease agreement with the buyer to continue operations and provide business continuity during a transition period; the sale is expected to close in October.