UNION, N.J., Nov. 23, 2016 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ: BBBY) announced today that it has acquired
PersonalizationMall.com (PMall.com), an industry-leading online
retailer of personalized products based in Burr Ridge, Illinois, for approximately
$190 million in cash, which reflects
certain closing adjustments.
Over the past 18 years, PMall.com has developed a
fully-integrated, proprietary technology platform that drives
quality, speed and efficiency throughout the process of
personalizing a breadth of products to each customer's unique
preference. PMall.com is a highly successful innovator of
personalized products and currently offers an extensive assortment
of products that can be customized through a variety of different
personalization processes including sublimation, embroidery,
digital printing, engraving, and sandblasting. PMall.com's
vertically integrated e-commerce platform includes an automated
personalization process and rapid order fulfillment, resulting in a
differentiated customer experience.
Bed Bath & Beyond remains focused on its mission to do more
for and with its customers and to be viewed as the expert for the
home, and to become the destination for customers' needs and wants
as they express their life interests and travel through their life
stages; all through the expanding and differentiated products,
services and solutions the Company offers. The acquisition of
PMall.com expands the Company's existing assortment in the growing
product personalization category and brings a complementary
portfolio of differentiated products that commemorate all of life's
events and special occasions such as weddings, birthdays, holidays
and the welcoming of a child.
"We are delighted to welcome PersonalizationMall.com to Bed Bath
& Beyond. They have built a tremendous business, and we are
excited to support them as they advance their industry-leading
position within the growing category of product personalization,"
stated Steven H. Temares, Chief
Executive Officer and Member of the Board of Directors of Bed Bath
& Beyond Inc. "As we have said previously, we view
personalization as a significant opportunity for us to create
additional differentiation and enable us to do more for and with
our customers." Temares added, "We look forward to supporting
PersonalizationMall.com as they continue to improve the customer
experience by enhancing their product mix, upgrading their
e-commerce website and driving optimization of their marketing
initiatives. At the same time, we are excited by the opportunity to
leverage their advanced personalization and production capabilities
to create additional omnichannel offerings across all of our
concepts."
"I am very proud of the work our team has done in building
PersonalizationMall.com into a market segment leader due to the
ever-increasing demand for a wide range of quality personalized
gift offerings," said Dan Randolph,
Founder and President, PersonalizationMall.com. "We are excited to
be given the opportunity to realize the full potential of the
PersonalizationMall.com brand in working together with Bed Bath
& Beyond. Additionally, it is a great opportunity for our
PMall Team to become part of such an admired company that is as
committed to great customer service as we are."
Bed Bath & Beyond funded the transaction using cash on hand,
and expects the acquisition to be slightly accretive to its net
earnings per diluted share for fiscal 2016. The acquisition of
PMall.com is not anticipated to have a material effect on Bed Bath
& Beyond's fiscal 2016 third quarter ending on November 26, 2016. The Company's fiscal 2016
third quarter results are scheduled to be reported on December 21, 2016.
Financial advisor to Bed Bath & Beyond on this transaction
was Goldman, Sachs & Co. PersonalizationMall.com was advised by
William Blair.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a
retailer selling a wide assortment of domestics merchandise and
home furnishings which operates under the names Bed Bath &
Beyond, Christmas Tree Shops, Christmas Tree Shops andThat! or
andThat!, Harmon or Harmon Face
Values, buybuy BABY and World Market, Cost Plus World Market or
Cost Plus. Customers can purchase products from the Company either
in-store, online, with a mobile device or through a contact center.
The Company generally has the ability to have customer purchases
picked up in-store or shipped direct to the customer from the
Company's distribution facilities, stores or vendors. In
addition, the Company operates Of a Kind, an e-commerce website
that features specially commissioned, limited edition items from
emerging fashion and home designers; One
Kings Lane, an authority in home décor and design offering a
unique collection of select home goods, designer and vintage items;
and PersonalizationMall.com, an industry-leading online retailer of
personalized products. The Company also operates Linen
Holdings, a provider of a variety of textile products, amenities
and other goods to institutional customers in the hospitality,
cruise line, healthcare and other industries. Additionally,
the Company is a partner in a joint venture which operates retail
stores in Mexico under the name
Bed Bath & Beyond.
Forward-Looking Statements
This press release may contain forward-looking statements.
Many of these forward-looking statements can be identified by use
of words such as may, will, expect, anticipate, approximate,
estimate, assume, continue, model, project, plan, and similar words
and phrases. The Company's actual results and future
financial condition may differ materially from those expressed in
any such forward-looking statements as a result of many factors.
Such factors include, without limitation: general economic
conditions including the housing market, a challenging overall
macroeconomic environment and related changes in the retailing
environment; consumer preferences, spending habits and adoption of
new technologies; demographics and other macroeconomic factors that
may impact the level of spending for the types of merchandise sold
by the Company; civil disturbances and terrorist acts; unusual
weather patterns and natural disasters; competition from existing
and potential competitors; competition from other channels of
distribution; pricing pressures; liquidity; the ability to attract
and retain qualified employees in all areas of the organization;
the cost of labor, merchandise and other costs and expenses;
potential supply chain disruption due to political instability,
labor disturbances, product recalls, financial or operational
instability of suppliers or carriers, and other items; the ability
to find suitable locations at acceptable occupancy costs and other
terms to support the Company's plans for new stores; the ability to
assess and implement technologies in support of the Company's
development of its omnichannel capabilities; the ability to
establish and profitably maintain the appropriate mix of digital
and physical presence in the markets it serves; uncertainty in
financial markets; disruptions to the Company's information
technology systems including but not limited to security breaches
of systems protecting consumer and employee information;
reputational risk arising from challenges to the Company's or a
third party supplier's compliance with various laws, regulations or
standards, including those related to labor, health, safety,
privacy or the environment; reputational risk arising from
third-party merchandise or service vendor performance in direct
home delivery or assembly of product for customers; changes to
statutory, regulatory and legal requirements; new, or developments
in existing, litigation, claims or assessments; changes to, or new,
tax laws or interpretation of existing tax laws; changes to, or
new, accounting standards; foreign currency exchange rate
fluctuations; and the integration of acquired businesses. The
Company does not undertake any obligation to update its
forward-looking statements.
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SOURCE Bed Bath & Beyond Inc.