UNION, N.J. — Bed Bath & Beyond Inc. has agreed to sell its Cost Plus World Market unit to Kingswood Capital Management, a private equity firm.
“We’ve taken deliberate steps throughout the year to streamline our portfolio and fortify our strategic focus in Home, Baby and Beauty & Wellness, and today’s announcement represents the conclusion of this work,” Bed Bath & Beyond’s president and chief executive officer Mark Tritton said. “In all, we have unlocked significant value from the divestiture of five business concepts this year, and we have also meaningfully reduced our lease liability and overall debt. These actions provide greater financial flexibility to support our digital first, omni-always transformation and our commitment to deliver sustainable total shareholder return.”
The company also approved a new $150 million accelerated share repurchase program (ASR), subject to market conditions, which will be in addition to the $225 million ASR announced on October 28, 2020. Both ASR programs are expected to be completed by no later than the end of the company’s fiscal year on February 27, 2021. The company has also expanded its total share repurchase program from up to $675 million to up to $825 million over the next three years by approving the new ASR program.
“We are pleased to announce the approval of a second ASR program which reinforces our capital allocation principles to drive shareholder value creation and reflects a strong liquidity position and confidence in our strategic growth plan.”
