Bed Bath & Beyond buying Cost Plus for $495M

UNION, N.J. (AP) - May 9, 2012 (WPVI) -- Bed Bath & Beyond Inc. is buying home goods retailer Cost Plus Inc. for about $495 million as it looks to offer a bigger variety of products to its customers.

Bed Bath & Beyond said Wednesday that it will pay $22 for each Cost Plus share, a 22 percent premium to Cost Plus' closing price of $17.99 on Tuesday.

The data tracker FactSet says Cost Plus currently has about 22.5 million outstanding shares.

Both companies' boards have unanimously approved the deal, which is expected to close during Bed Bath & Beyond's fiscal second quarter. The transaction will be funded with available cash.

Shares of Union, N.J.-based Bed Bath & Beyond fell $1.48, or 2.2 percent, to $66.75 in morning trading. Shares of Oakland, Calif.-based Cost Plus had not yet opened.

Get more Business/Finance »

business/finance

• Comment Now
• Email
• Print
• Report a typo
•