Bed Bath & Beyond announced the expansion of Beyond Home Services, its dedicated home services platform, through the acquisitions of Installed Right and SFV Services. The deals strengthen the third pillar of the company’s Everything Home strategy by adding installation, renovation, construction, and project execution capabilities.
Headquartered in Detroit, Installed Right and SFV Services were founded and are led by Mitch Rosen and his family. The businesses provide installation, remodeling, facilities management, and construction services to customers across the United States.
According to Bed Bath & Beyond, the acquisitions not only enhance its Home Services platform, but also support the company’s retail operations and homeownership-related businesses. The additions are expected to deepen customer relationships and provide recurring revenue opportunities while differentiating the company from traditional retailers.
Installed Right specializes in the installation of closets and storage systems, flooring, cabinetry, lighting, shelving, garage organization systems, and other home improvement products. SFV Services offers renovation, demolition, construction management, project management, facilities maintenance, and franchise rollout services across residential and commercial markets.
The acquired businesses generated approximately $60 million in combined revenue and about $5 million in adjusted EBITDA during the most recently completed fiscal year. Under the terms of the transaction, Bed Bath & Beyond will issue approximately 7.2 million shares of common stock to the sellers. The Rosen family will become long-term shareholders in the company and participate in the future growth of Beyond Home Services.
The transaction, which is expected to close by the end of June, remains subject to final documentation and due diligence. Bed Bath & Beyond expects the acquisition to be immediately accretive to adjusted EBITDA.
The company also noted that the acquired businesses’ experience with store remodels, fixture installations, and retail construction projects will support Bed Bath & Beyond’s capital-light store conversion strategy. In addition, management sees opportunities to extend these capabilities across its Elfa and Closet Works businesses.
Bed Bath & Beyond said the home services market remains highly fragmented and presents significant opportunities for additional consolidation under the Beyond Home Services platform.
KEY QUOTES:
“Acquisitions are not only about adding revenue or EBITDA, they are about acquiring capabilities that make our platforms and Everything Home ecosystem more valuable. We are particularly excited to welcome the Rosen family as long-term shareholders and partners.”
“Our diligence was straightforward. We found a business with a long history of performance, a reputation for consistency, and a founder-led culture that understands what it takes to operate successfully on a national scale. We were able to evaluate years of real-world execution through longstanding relationships with companies like Lumber Liquidators and Cabinets To Go, and saw both strong customer reviews and durable financial results.”
“Their experience executing store remodels, fixture installations and retail construction projects also supports our capital-light store conversion strategy, providing additional expertise as we continue expanding and refining our physical footprint. We look forward not only to expanding the business through organic growth, but also to extending these capabilities across Elfa and Closet Works. The home services market remains highly fragmented, and we believe there is a significant opportunity to continue consolidating complementary businesses under the Beyond Home Services banner.”
Marcus Lemonis, Executive Chairman and Chief Executive Officer, Bed Bath & Beyond
