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Bed Bath & Beyond Inc. BBBY, -2.53% announced Monday that it has entered into a definitive agreement to sell Cost Plus World Market for an undisclosed amount to Los Angeles-based private-equity firm Kingswood Capital Management.
The deal includes 243 bricks-and-mortar stores, two distribution facilities, an e-commerce business and a corporate office in Alameda, Calif.
Cost Plus World Market is expected to continue operating as a stand-alone brand.
See: Bed Bath & Beyond has laid out its transformation plan, now analysts are focused on execution
The deal marks the final sale of Bed Bath & Beyond’s non-core businesses. For example, the company has also sold PersonalizationMall.com to 1-800-Flowers.com Inc. FLWS, +3.88% and divested its One Kings Lane home décor business earlier this year.
Bed Bath & Beyond laid out a three-year transformation plan during its investor event in late-October that included the sale of non-core assets with proceeds funding its resumed share buyback program.
The retailer also announced Monday that it has approved an additional $150 million accelerated share buyback program, in addition to the $225 million program approved on Oct. 28. Both are expected to be complete by the end of the fiscal year on Feb. 27, 2021.
The new approval will bring the total for the company’s share repurchase program to $825 million over the next three years, up from $675 million previously.
Separately, Bed Bath & Beyond announced a three-day free same-day delivery promotion with Shipt that will launch on Monday for the namesake retailer and buybuy Baby. The deal applies to orders of $39 or more, and items purchased by 1 p.m. will be delivered the next day.
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Customers will also get a 20% discount Dec. 17 through Dec. 24 on purchases made using curbside pickup or buy-online-pickup-in-store.
Bed Bath & Beyond is scheduled to report fiscal third-quarter earnings on Jan. 7, 2021.
Bed Bath & Beyond shares have rallied 51% over the past three months, and 25% over the past year. The benchmark S&P 500 index SPX, +0.47% has gained 15.6% for the past 12 months.
