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Bed Bath & Beyond Agrees to Sell Christmas Tree Shops & More
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Bed Bath & Beyond Inc. , as part of its streamlining efforts, has divested many businesses in the past year, including the conclusion of the sale of PersonalizationMall.com in August. In its latest efforts, the company signed separate agreements for the sale of its Christmas Tree Shops retail banner, its institutional Linen Holdings business, and a distribution center in Florence, NJ. The sale of these brands and assets will collectively attract proceeds of nearly $250 million.
The sale agreement of Christmas Tree Shops with Handil Holdings, LLC includes its 80 brick-and-mortar Christmas Tree Shops and a distribution center in Middleborough, MA. Under the agreement, the companies have also signed a transition service agreement to ensure the continuity of business during the holiday season. Following the likely completion of the sale in November 2020, Handil Holdings plans to operate the Christmas Tree Shops as a separate store chain.
The Linen Holdings business will be sold to Lion Equity Partners through its affiliate The Linen Group, LLC, and will be merged with Riegel Linen, which is its existing portfolio company. The companies expect the sale to close in October 2020. The Linen Holdings primarily sells quality linen, terry, amenities, case goods and apparel to top-notch businesses in the hospitality and healthcare industries worldwide.
Further, Bed Bath & Beyond signed an agreement to sell the Florence, NJ-based distribution center to an institutional buyer, as part of its efforts to streamline and modernize distribution and fulfillment capabilities to enhance omni-channel services. The deal allows Bed Bath & Beyond to continue operations for business continuity during the transition period through a lease agreement. The sale is likely to be sealed in October 2020.
This sale of the aforementioned brands and asset is expected to accelerate the company’s restructuring efforts and business transformation to unlock shareholder value. The company is continuously looking to optimize asset and brand portfolio through the sale of non-core assets, which will improve financial strength and shareholder value. Notably, the divesture of non-core assets and businesses will help focus on its core categories, including Home, Baby, Beauty and Wellness.
In August 2020, the company completed the divestment of PersonalizationMall.com to 1-800-FLOWERS.COM for $245 million. Even after the sale, PersonalizationMall.com will continue to support Bed Bath & Beyond, and buybuy BABY stores.
Moreover, it is investing in omni-channel services like Buy-Online-Pickup-In-Store and contactless Curbside Pickup services as well as its digital business to enhance customers’ shopping experience. The efforts have received positive responses from customers during the pandemic.
All said, we expect these transactions to aid the company’s restructuring process, which, in turn, will drive growth in the near term. We note that this Zacks Rank #2 (Buy) stock has skyrocketed 149.4% in the past three months, outperforming the industry’s growth of 12.9%.
Hibbett Sports (HIBB - Free Report) , also a Zacks Rank #1 stock, has an expected long-term earnings growth rate of 13.8%.
Sally Beauty Holdings, Inc. (SBH - Free Report) has an expected long-term earnings growth rate of 4.1% and a Zacks Rank #2.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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Bed Bath & Beyond Agrees to Sell Christmas Tree Shops & More
Bed Bath & Beyond Inc. , as part of its streamlining efforts, has divested many businesses in the past year, including the conclusion of the sale of PersonalizationMall.com in August. In its latest efforts, the company signed separate agreements for the sale of its Christmas Tree Shops retail banner, its institutional Linen Holdings business, and a distribution center in Florence, NJ. The sale of these brands and assets will collectively attract proceeds of nearly $250 million.
The sale agreement of Christmas Tree Shops with Handil Holdings, LLC includes its 80 brick-and-mortar Christmas Tree Shops and a distribution center in Middleborough, MA. Under the agreement, the companies have also signed a transition service agreement to ensure the continuity of business during the holiday season. Following the likely completion of the sale in November 2020, Handil Holdings plans to operate the Christmas Tree Shops as a separate store chain.
The Linen Holdings business will be sold to Lion Equity Partners through its affiliate The Linen Group, LLC, and will be merged with Riegel Linen, which is its existing portfolio company. The companies expect the sale to close in October 2020. The Linen Holdings primarily sells quality linen, terry, amenities, case goods and apparel to top-notch businesses in the hospitality and healthcare industries worldwide.
Further, Bed Bath & Beyond signed an agreement to sell the Florence, NJ-based distribution center to an institutional buyer, as part of its efforts to streamline and modernize distribution and fulfillment capabilities to enhance omni-channel services. The deal allows Bed Bath & Beyond to continue operations for business continuity during the transition period through a lease agreement. The sale is likely to be sealed in October 2020.
This sale of the aforementioned brands and asset is expected to accelerate the company’s restructuring efforts and business transformation to unlock shareholder value. The company is continuously looking to optimize asset and brand portfolio through the sale of non-core assets, which will improve financial strength and shareholder value. Notably, the divesture of non-core assets and businesses will help focus on its core categories, including Home, Baby, Beauty and Wellness.
In August 2020, the company completed the divestment of PersonalizationMall.com to 1-800-FLOWERS.COM for $245 million. Even after the sale, PersonalizationMall.com will continue to support Bed Bath & Beyond, and buybuy BABY stores.
Moreover, it is investing in omni-channel services like Buy-Online-Pickup-In-Store and contactless Curbside Pickup services as well as its digital business to enhance customers’ shopping experience. The efforts have received positive responses from customers during the pandemic.
All said, we expect these transactions to aid the company’s restructuring process, which, in turn, will drive growth in the near term. We note that this Zacks Rank #2 (Buy) stock has skyrocketed 149.4% in the past three months, outperforming the industry’s growth of 12.9%.
Other Stocks to Consider
DICKS Sporting Goods, Inc. (DKS - Free Report) currently has an expected long-term earnings growth rate of 4.8% and it sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hibbett Sports (HIBB - Free Report) , also a Zacks Rank #1 stock, has an expected long-term earnings growth rate of 13.8%.
Sally Beauty Holdings, Inc. (SBH - Free Report) has an expected long-term earnings growth rate of 4.1% and a Zacks Rank #2.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>