Bed Bath & Beyond Inc. (NYSE: BBBY) announced definitive agreements to acquire The Container Store, Elfa and Closet Works as part of its expansion strategy, according to a letter from Executive Chairman and CEO Marcus Lemonis to shareholders.

The company has completed the acquisition of Kirkland's, which operates over 230 locations nationwide and specializes in home décor and seasonal merchandise. The Container Store, Elfa and Closet Works acquisitions are expected to close in July 2026.

Under the transaction structure, consideration includes Bed Bath & Beyond common stock priced at $7.00 per share and convertible notes at approximately $9.10 per share. The Container Store brings more than 100 retail locations representing over 2.2 million square feet of retail space, with an average footprint of approximately 21,000 square feet per store.

The acquired locations will be rebranded as The Container Store / Bed Bath and Beyond and will feature merchandise across bed, bath, storage, organization, kitchen and entertaining categories. The company plans to expand home services offerings to include flooring, lighting, kitchen, laundry room and bathroom cabinetry.

Elfa, based in Malmö, Sweden, specializes in home organization systems, while Closet Works operates in the Chicago area. Both companies will anchor the company's Home Services division, focusing on design, customization and installation services.

Bed Bath & Beyond projects at least $40 million in annualized cost savings and productivity efficiencies within 12 to 18 months of fully integrating the acquired companies. The company reported early signs of revenue growth and earnings improvement in the first quarter of 2026 compared to the same period in 2025.

Amy Sullivan will serve as President with responsibility for enterprise performance and integration across all business divisions. Lisa Foley will transition from Chief Marketing Officer to Chief Operating Officer, while Brian LaRose continues as Chief Financial Officer. Anders Hahn will become CEO of Elfa after serving as President for ten years.