Southwind acquired by Bed, Bath & Beyond

Drew Hash, Southwind

Murray, Utah—Bed, Bath & Beyond Inc., has signed a letter of intent to acquire the equity interests and substantially all assets of F9 Brands Inc., which includes Southwind Building Products. The deal is for roughly $150 million, including $37 million in cash and approximately 16 million shares of BBBY common stock at $7 per share, representing a transaction value of $107 million at the current market price. The transaction is expected to close after the company’s annual shareholder meeting in May 2026. In addition to Southwind, F9 Brands owns and operates Lumber Liquidators, Cabinets to Go and Gracious Home/Thos. Baker.

Following the announcement, Drew Hash, president/CEO of Southwind, told FCNews the acquisition strengthens the company’s position as it relates to flooring and beyond. “We believe the new company will give our dealers access to more products, especially in closets and cabinets,” he said. “This expanded portfolio will allow our dealers the ability to offer even more solutions to their customers from a brand (Southwind) and people they trust. It’s a win for both our associates and our customers.”

Hash added that the acquisition “does not change our core mission of offering our dealers innovative, well-styled products that are competitively priced and delivered/serviced on time.”

Bed Bath & Beyond Inc., owns Bed Bath & Beyond, Overstock, buybuy BABY, Kirkland’s and a blockchain asset portfolio. With the acquisition, the organization aims to build a national, fully integrated home services platform under a new “Beyond Home Services” banner. Jason Delves, president and CEO of F9 Brands since 2019, will serve as CEO of Beyond Home Services.

The deal for Lumber Liquidators—which had been on the comeback trail after declaring bankruptcy in 2024—comes just a week after it announced a deal to acquire The Container Store, Elfa and Closet Works.

According to Bed, Bath & Beyond CEO Marcus Lemonis, Beyond Home Service is designed “to serve customers across the full lifecycle of homeownership, from design and product selection to installation and financing.”

To that end Beyond Home Services will combine brands across flooring, cabinets, closets and distribution with installation services, financing solutions and a growing retail footprint, which “positions Bed Bath & Beyond to participate in larger, higher frequency home projects with increased customer lifetime value,” Lemonis said.

Transaction highlights

• Bed Bath & Beyond’s Beyond Home Services division will include distinct category leaders across storage, closets, cabinets, flooring, installation, renovation and distribution.
• Seller and its management team will be entitled to a one-time earnout of $25 million if F9 Brands achieves $20 million in EBITDA (earnings before interest, taxes, depreciation and amortization) and in any of the next five calendar years, subject to negotiation of final terms.
• F9 Brands generated approximately $522 million in net delivered sales in fiscal 2025.
• F9 Brands currently has approximately $130 million of inventory on hand.
• $40 million of financing from existing lender will roll into the deal.
• Integrated financing solutions including credit cards, HELOC (home equity line of credit), and credit union programs.

Shift to higher ticket, higher margins

Bed Bath & Beyond said its acquisition push represents a shift from traditional retail into higher ticket, higher margin, project-based categories including flooring, kitchens and custom storage. By combining product, installation and financing into a single experience, the company said it can increase average transaction size, average transaction margin and customer lifetime value.

“With the anticipated addition of Lumber Liquidators and Cabinets To Go to Elfa and Closet Works, Beyond Home Services is established with the brands, the capabilities and the team to serve the homeowner from concept to completion,” Lemonis said. “Each brand owns a distinct category—modular storage systems, custom closets, flooring, cabinets and countertops, carpet and hard surface flooring distribution—and together with our installation services and field sales organization, we can take the homeowner through the full lifecycle of a renovation, all under one platform.”

In addition to the standalone Cabinets To Go and Lumber Liquidators stores, BBBY customers will have access to F9 Brands’ products and services through the Custom Spaces section of The Container Store/Bed Bath & Beyond stores. The company said it plans to leverage more than 2.2 million square feet of retail space to create “full-service home project centers where customers can design, purchase, finance and install complete home solutions.”

After primarily occupying the online/digital space the past few years, Bed Bath & Beyond is returning to physical retail after filing for bankruptcy in April 2023, closing its final stores that summer. The brick-and-mortar revival began in August 2025 with a Nashville-area store called “Bed Bath & Beyond Home,” and Lemonis has said Bed Bath & Beyond could have up to 300 new and rebranded locations by the end of 2026.

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