Bed Bath & Beyond Inc. continues to make progress in its goal to streamline its portfolio and shed non-core businesses.
The home goods retailer announced it has completed the sale of its Christmas Tree Shops banner, its institutional Linen Holdings business and a distribution center located in Florence, N.J. The total cash proceeds from the three separate sales agreements were approximately $250 million.
In October, Bed Bath & Bed said it had entered into agreements to sell its 80-store Christmas Tree Shops unit to Handil Holdings and its institutional Linen Holdings business to The Linen Group LLC, an affiliate of Lion Equity Partners. It also said would sell distribution center in Florence, N.J., to an institutional buyer.
"The timely completion of these transactions represents another important milestone in our comprehensive plan to simplify our portfolio, unlock the potential of our business and extend our authority in the home, baby, beauty and wellness markets,” said Mark Tritton, president and CEO. “We will continue to optimize our portfolio, including the potential sale of additional non-core assets.”
Since Tritton took the reins of Bed Bath & Beyond a little over a year ago, the company has, among other things, focused on the divestiture of non-core assets and banners. The effort has generated more than $750 million to re-invest in the company’s “digital-first, omni-always transformation and drive strong and sustainable total shareholder return,” Tritton said.
In October, Bed Bath & Bath laid out a three-year strategy to accelerate its omnichannel transformation and drive sales, margin and cash flow growth.
Advisors to Bed Bath & Beyond on the Christmas Tree Shops and Linen Holdings transactions included B. Riley Securities Inc. and Bryan Cave Leighton Paisner. JLL advised the retailer on the real estate transaction.