Bed Bath & Beyond is expanding its home-focused portfolio through a series of acquisitions, as it builds out its ‘Everything Home’ ecosystem.

The company has completed the purchase of Kirkland’s, which operates more than 230 stores across the US, and has signed agreements to bring The Container Store, Elfa, and Closet Works into the group. 

Executive chairman and CEO Marcus Lemonis said the move follows an extended review and signals the company’s “next phase of growth”.

“We believe we have assembled a lineup of brands that covers the most important categories that help turn a house into a home, with a clear mandate to make that process simple and affordable,” he said.

As part of the acquisition, The Container Store locations will be rebranded as The Container Store / Bed Bath & Beyond, combining merchandise across home categories, including bed, bath, storage, kitchen, and entertainment.

The locations will also expand into home services, including custom closets, flooring, and lighting, supported by Elfa and Closet Works.

“The strategy is set. Now it is about execution. Integrating these businesses, unlocking their full potential, and delivering measurable results,” Lemonis added.

The company expects the integration of Kirkland’s, The Container Store, Elfa, and Closet Works to deliver at least $40 million in annualized cost savings and efficiencies within 12 to 18 months.

Commenting on the deal, Neil Saunders said the expansion strengthens Bed Bath & Beyond’s position in home services while adding a physical retail footprint; however, he noted that integration will be key. 

“While we think the latest move has merit, we also believe that Bed Bath & Beyond needs to spend some time carefully pulling the strands of the various businesses it has acquired together,” he said.

“At present, the business is a bit of a hodgepodge, and the vision of how it becomes a cohesive company within the home space remains somewhat unclear.”

All transactions are expected to be settled in July.