Bed Bath & Beyond has completed the sale of PersonalizationMall.com (PMall) to 1-800-Flowers.com, Inc. for $245 million, subject to certain customary post-closing adjustments. PMall will continue to provide product and personalization services to the company’s Bed Bath & Beyond and buybuy Baby retail concepts.
Mark Tritton, president and CEO, Bed Bath & Beyond, said, “The completion of this transaction is an important milestone in our plan to simplify our portfolio and rebuild authority in our core market. Since announcing our intention to divest PMall back in February 2020, we have made significant progress in our efforts to optimize growth within home, baby, beauty and wellness, assembling a world class leadership team, restructuring our operations and introducing new services like buy-online-pickup-in-store and contactless curbside pickup.”
In connection with a previously executed settlement agreement, the two parties’ counsel have executed a stipulation and proposed order of dismissal, which is expected to be filed one business day after closing and will result in the voluntary dismissal with prejudice of the litigation relating to the transaction.
The cash proceeds from this transaction further strengthen the company’s liquidity and financial flexibility as it continues to build a balanced, durable financial model, the company noted. With respect to capital allocation strategies, in March 2020 the company postponed its plans for share repurchase and suspended dividends and planned debt reductions in light of the COVID-19 pandemic. Bed Bath & Beyond said it is committed to a balanced capital return program over the mid-to-long term and will re-evaluate when appropriate.
The company said it also continues to review its non-core assets for opportunities to further simplify its portfolio.