In the latest in a series of divestments this year, Bed Bath & Beyond (BBBY) is selling several of its assets. The company announced on Tuesday that it has reached agreements to unload its Christmas Tree Shops retail brand, its Linen Holdings unit, and a New Jersey distribution center. All told, these sales should bring in roughly $250 million for the specialty retailer.
The buyer in the most significant divestment, that of Christmas Tree Shops, is privately held Handil Holdings. It will receive all 80 outlets of the holiday retailer store. Part of the deal between the two companies is a transition service agreement that will kick in at the close of the transaction and "help ensure business continuity, particularly during the upcoming holiday season," according to Bed Bath & Beyond.
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The counterparty in the Linen Holdings sale is private equity firm Lion Equity Partners, which will merge that business with one of its portfolio companies, Riegel Linen.
Bed Bath & Beyond did not say who it is selling the distribution center to, saying only that this party is "an institutional buyer." It's a short term sale-leaseback deal; the company said it will rent the facility for an unspecified transition period.
Bed Bath & Beyond did not break down the value of each deal individually.
"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," the company quoted its CEO Mark Tritton as saying.
