Union-based Bed Bath & Beyond Inc. today agreed to acquire Cost Plus Inc., in Oakland, Calif., for $495 million in cash, adding an additional 259 stores nationwide and a new e-commerce platform to the home furnishings company.
Bed Bath & Beyond, which operates 1,173 locations nationwide, has agreed to make a cash offer for all outstanding shares of Cost Plus at $22 per share — a 22 percent increase from the company's $17.99 closing price on Tuesday.
Since 2010, Bed Bath & Beyond has opened four in-store Cost Plus specialty-foods shops leading up to today's transaction, the company said in a statement.
Both companies' boards have approved the deal, and Bed Bath & Beyond expects it to close before August to slightly increase its earnings in the current year. Red Mountain Capital Partners LLC and Stephens Holdings LLC — the two largest Cost Plus shareholders — have agreed to enter into the deal, the company said in a statement.
In 2011, Cost Plus' revenues totaled $963.8 million, while Bed Bath & Beyond's were $9.5 billion.
Following the release of the companies' statement, three law firms separately announced they are investigating potential claims against Cost Plus' board of directors for failing to disclose information about the transaction to shareholders.