Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  Bed Bath & Beyond Inc.    BBBY

News SummaryMost relevantAll newsSector news 

Bed Bath & Beyond To Buy Cost Plus For $494 Million

share with twitter share with LinkedIn share with facebook
share via e-mail
05/09/2012 | 03:51pm CET

Bed Bath & Beyond Inc. (>> Bed Bath & Beyond Inc.) agreed to acquire Cost Plus Inc. (CPWM) for about $494 million through a cash tender offer as the home furnishings retailer adds a discount chain to its offerings.

Cost Plus runs stores that sell a mix of home furnishings, accessories and gourmet food and wine at discount prices. President and Chief Executive Barry Feld said in March that the company's same-store sales improved markedly in the second half of the latest fiscal year, allowing the company to report a profit.

The company staved off extinction during the depths of the financial crisis as its shares were trading for less than $1 during parts of 2009.

The deal, worth $22 a share, marks a 22% premium over Tuesday's close of $17.99. The stock has surged 85% this year through the close and last traded above the offer price in 2005. Shares were halted premarket. Cost Plus had 22.5 million shares outstanding as of April 6.

Bed Bath & Beyond, meanwhile, has posted stronger profits since the recession, helped by cross merchandising, flexibility for local management and advertising cuts. The retailer has also increased sales over the past two years while keeping overhead costs relatively steady.

The offer has the backing of Red Mountain Capital Partners LLC and Stephens Investment Holdings LLC, the two largest shareholders of Cost Plus, which together own about a 26% interest.

The deal, which is expected to close during Bed Bath & Beyond's fiscal second quarter, is also expected to slightly add to its per-share earnings for fiscal 2012, after transaction and integration costs. The company still expects a high-single-digit to a low-double-digit percentage increase in per-share earnings this year.

Both boards have approved the deal, and a special committee of the Cost Plus board has recommended the offer.

The deal isn't subject to financing and will be funded with available cash.

In March, Cost Plus reported its fiscal fourth-quarter profit grew a stronger-than-expected 28% as both customer volume and spending climbed. And Bed Bath & Beyond last month said its fiscal fourth-quarter profit climbed 24% as the housewares retailer's revenue growth and same-store sales topped its expectations.

Bed Bath & Beyond shares were off 2% to $66.84 premarket.

-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; lauren.pollock@dowjones.com

Stocks mentioned in the article : Bed Bath & Beyond Inc.
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BED BATH & BEYOND INC.
12/06 BED BATH & BEYOND : bandits led police on 120 mph chase over stolen vacuums
11/24 BED BATH & BEYOND : Burlington Police Man sought in counterfeiting case
11/23 BED BATH & BEYOND : Acquires PersonalizationMall.com
11/23 BED BATH& BEYOND INC. (NASDAQ : BBBY) Files An 8-K Regulation FD Disclosure
11/23 BED BATH & BEYOND INC : Regulation FD Disclosure, Other Events, Financial Statem..
11/10 NASDAQ 100 MOVERS : Nflx, nclh
11/10 Bed Bath & Beyond Inc. Liberty Property Trust, AutoNation, Inc.
11/09 BED BATH & BEYOND INC. : (BBBY) Pops 3.65% for November 09
11/08 BED BATH & BEYOND : Kris Bryant talks wedding plans with Jimmy Kimmel, see his r..
10/15 BED BATH & BEYOND : Safer Lock Locking Prescription Bottles Sold at Bed Bath & B..
More news
Sector news : Home Furnishings Retailers - NEC
11/18DJWILLIAMS SONOMA : Gives Downbeat Forecast for Current Quarter
09/14DJSteinhoff's Says Takeover Offer for Mattress Firm Successful
09/13DJGlobal Logistic Properties to Buy U.S. Warehouse Portfolio for $1.1 Billion
09/07 Poundland shareholders give blessing to Steinhoff takeover
More sector news : Home Furnishings Retailers - NEC
News from SeekingAlpha
12/07 VALUATION DASHBOARD : Consumer Discretionary - Update
12/01 Bed Bath & Beyond Is A Growth Company Trading Very Cheaply
11/28 WALL STREET BREAKFAST : Trump Trade Gives In To Gravity
11/27 The Low EV/EBIT Strategy, Large Cap Update 2016 YTD
11/25 Bed Bath & Beyond Steps Up E-Commerce Activities With PersonalizationMall.com
Financials ($)
Sales 2017 12 237 M
EBIT 2017 1 197 M
Net income 2017 714 M
Debt 2017 985 M
Yield 2017 0,70%
P/E ratio 2017 10,10
P/E ratio 2018 9,72
EV / Sales 2017 0,68x
EV / Sales 2018 0,66x
Capitalization 7 302 M
More Financials
Duration : Period :
Bed Bath & Beyond Inc. Technical Analysis Chart | BBBY | US0758961009 | 4-Traders
Full-screen chart
Technical analysis trends BED BATH & BEYOND...
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 26
Average target price 43,1 $
Spread / Average Target -10%
Consensus details
EPS Revisions
More Estimates Revisions
Steven H. Temares Chief Executive Officer & Director
Arthur Stark President & Chief Merchandising Officer
Leonard Feinstein Co-Chairman
Warren Eisenberg Co-Chairman
Eugene A. Castagna Chief Operating Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BED BATH & BEYOND INC.-0.50%7 302
DUNELM GROUP PLC-22.22%1 931
More Results