Bed Bath & Beyond Strikes Deal to Buy The Container Store (2)

(Adds analyst comments, context.)

Bed Bath & Beyond said that it agreed to buy The Container Store, Elfa and Closet Works. It also expects at least $40 million of annualized cost savings within 12 to 18 months from fully integrating Kirkland’s Home and The Container Store’s home organization brands.

• Shares of Bed Bath & Beyond are up around 0.9%, while the S&P Consumer Discretionary Sector Index is down around 1.7%
• Jefferies analyst Jonathan Matuszewski (hold, PT $5.50) is “encouraged by the progress” on Chief Executive Officer Marcus Lemonis’ strategy outlined in January
  • The deal increases exposure to the upper-middle-income consumer and ...