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Dive Brief:
Bed Bath & Beyond Inc. (formerly Beyond Inc.) has completed a $10 million acquisition of Kirkland’s Home trade name and brand assets from The Brand House Collective, according to a Monday press release.
Bed Bath & Beyond Inc. previously said it would acquire the intellectual property assets for $5 million, per a May filing with the U.S. Securities and Exchange Commission. Bed Bath & Beyond Inc. did not immediately respond to Retail Dive’s request for comment.
With the completion of the deal, Bed Bath & Beyond Inc. will expand Kirkland’s Home into the wholesale market for the first time. Bed Bath & Beyond Inc. will continue to earn a revenue-related fee per existing agreements.
Dive Insight:
Bed Bath & Beyond Inc. is officially adding Kirkland’s Home to its portfolio of retail brands, which also includes Bed Bath & Beyond, Overstock and BuyBuy Baby.
The strategic partnership between Bed Bath & Beyond Inc. and Kirkland’s Home began in October, when the companies announced they would open up five neighborhood small-format Bed Bath & Beyond stores. The first of those opened this August by converting an old Kirkland’s Home location. The store is accepting the old coupons Bed Bath & Beyond was once known for.
“The excitement around the Bed Bath & Beyond brand has been undeniable with the first of many store conversions,” Bed Bath & Beyond Inc. Executive Chairman Marcus Lemonis said in a statement. “This early success reinforces our conviction in the strategy and our commitment to accelerate the rollout nationwide. Kirkland’s Home design and product development will expand through both Bed Bath & Beyond Home stores and the wholesale market, and I have full confidence in Amy Sullivan and her team to drive this growth.”
The companies in May entered into a purchase agreement of $5 million for Bed Bath & Beyond to acquire Kirkland’s “right, title and interest in and to its trademarks and domain names.” The company said it planned to then license back the trademarks to what is now The Brand House Collective.
In the same announcement, the company said it agreed to a $5.2 million expansion of an existing credit facility with Kirkland’s. This complex deal also included changes to Bed Bath & Beyond Inc’s share of Kirkland’s quarterly retail revenue and the ability to acquire up to 65% of Kirkland’s outstanding capital stock, allowing it to nominate new board members.