(RTTNews) – Bed Bath & Beyond Inc. (BBBY) Tuesday said it has entered into separate agreements to sell its Christmas Tree Shops retail banner, its institutional Linen Holdings business, and a distribution center located in Florence, New Jersey.
The company expects to generate a total of about $250 million in aggregate from the monetization of these assets as it continues to optimize its portfolio, potentially including the sale of additional non-core assets, to further increase its financial strength and enhance shareholder value.
CEO Mark Tritton said, “Today’s announcement builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the Home, Baby, Beauty and Wellness markets.”
Bed Bath & Beyond will sell Christmas Tree Shops to Handil Holdings, LLC. The purchase agreement includes all 80 brick-and-mortar Christmas Tree Shop locations and a Middleborough, MA distribution center. Handil Holdings, LLC expects to continue operating Christmas Tree Shops as a stand-alone retail brand. The transaction is expected to close in November 2020.
The company will sell its Linen Holdings business to The Linen Group, LLC, an affiliate of Lion Equity Partners. Linen Holdings will be merged with Riegel Linen, an existing Lion Equity portfolio company. The sale of Linen Holdings is expected to close in October 2020.
Bed Bath & Beyond has agreed to sell its distribution center in Florence to an institutional buyer.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.