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.
