Bed Bath & Beyond Inc. (BBBY) said it bought Linen Holdings
LLC for about $105 million in cash, marking the second acquisition
deal for the home furnishings retailer in as many months.
Gibbsboro, N.J.-based Linen Holdings is a privately held
distributor of bath, bed and table linens and other textile
products. Its customers come from hospitality, cruise-line,
food-service, health-care and other industries.
Last month, Bed Bath & Beyond agreed to buy Cost Plus Inc.
(CPWM), a discount chain, for $550 million, its largest acquisition
to date, as it looks to expand sales of specialty foods and add
products that aren't easily found elsewhere.
Bed Bath & Beyond said the Linen Holdings acquisition
shouldn't have any material effect on its fiscal 2012 results or
financial condition. Since the deal closed in the fiscal second
quarter, it isn't expected to have any effect on the fiscal first
quarter, which ended May 26, the company said.
Bed Bath & Beyond has posted stronger profits since the
recession, helped by cross-merchandising, flexibility for local
management and advertising cuts. The retailer has also increased
sales over the past two years while keeping overhead costs
relatively steady.
In April, the retailer said its fiscal fourth-quarter profit
climbed 24% as revenue growth and same-store sales topped its
expectations.
Shares closed Friday at $70.78 and were up 15 cents after hours.
The stock is up 22% year-to-date.
By Ben Fox Rubin, Dow Jones Newswires; ben.rubin@dowjones.com