Bed Bath & Beyond (NYSE: BBBY) has agreed to acquire The Container Store in a $150 million deal, two years after first exploring moves to snap up the specialty retailer of storage, organization products, and custom closets.

Headquartered in the Dallas suburb of Coppell, The Container Store was founded in 1978. It operates around 100 stores nationwide, offering over 10,000 products that “transform lives through the power of organization.” The Container Store filed for Chapter 11 bankruptcy in December 2024, but successfully exited it one month later as a privately held company.

Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023 and closed all of its 360-plus brick-and-mortar stores within three months of that filing. The brand and its digital assets were subsequently acquired by Beyond, Inc. (formerly known as Overstock.com), with BBB relaunched as an online brand amid the testing of new, smaller BBB retail locations.

Deal followed 18 months of study

In a letter to shareholders released today, BBB Executive Chairman and CEO Marcus Lemonis said his team had studied The Container Store business for over 18 months “because it brings not only more than 100 trophy locations, but also a culture and operating discipline that aligns with the standards we are building.”

“These locations represent over 2.2 million square feet of premium retail space,” Lemonis added. “We see a meaningful opportunity to better leverage these locations by expanding assortment, introducing additional brands, and creating a more comprehensive experience for the homeowner.”

Lemonis said BBB will introduce additional products into the Container Store offerings, including flooring, lighting, kitchen, laundry room, and bathroom cabinetry, “creating a more complete solution, which we believe will help drive both revenue and margin expansion.”

Deal comes with a rebranding—and other deals

As a result of a deal, all existing Container Store locations will be branded The Container Store / Bed Bath and Beyond. 

In addition to acquiring The Container Store, Lemonis said BBB has signed definitive agreements to merge two other premium businesses—Elfa and Closet Works—into Bed Bath & Beyond.

Based in Malmö, Sweden, Elfa is one of the world’s leading home organization systems, and its home closet solutions have been a staple inside Container Store locations. Closet Works is based in greater Chicago and is a designer, manufacturer, and installer of custom home storage and organization solutions.

Bed Bath & Beyond—which is headquartered in Murray, Utah—also announced the closing of its acquisition of Kirkland’s, a leader in home décor and seasonal merchandise since 1966. Kirkland’s operates 230 stores nationwide.

Lemonis said the acquisitions are aligned with BBB’s three pillar strategy: the Omni Channel Retail Pillar, the Products and Services Pillar, and the Home Services Pillar.

“We believe we have assembled a lineup of brands that covers the most important categories that help turn a house into a home, with a clear mandate to make that process simple and affordable,” he said in his shareholder’s letter.

Seeing $40M in cost savings—and announcing leadership moves

According to regulatory filings, BBB’s Container Store acquisition will be funded through a mix of common stock priced at $7 per share and convertible notes priced at around $9.10 per share. The deal is expected to close in July.

Lemonis said BBB believes it can deliver at least $40 million of annualized cost savings and productivity efficiencies within 12 to 18 months by fully integrating Kirkland’s Home, The Container Store, Elfa, and Closet Works into the company.

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