Bed Bath & Beyond Acquires F9 Brands, Including Gracious Home

The $150 million deal aims to expand BBB's home services platform with higher-margin, project-based offerings.

Apr. 8, 2026 at 1:22pm

Bed Bath & Beyond Inc. has signed a letter of intent to acquire the assets of F9 Brands Inc., a portfolio of businesses in the building products, home improvement, and luxury home decor industries. The roughly $150 million transaction includes Gracious Home, the iconic New York luxury home goods retailer that now operates as an e-commerce business. This strategic move is part of BBB's plan to shift the company into higher-margin, project-based home improvement categories by combining product offerings with installation and financing services.

Why it matters

The acquisition of F9 Brands, including Gracious Home, is a key part of Bed Bath & Beyond's strategy to transform its business model from traditional retail to a higher-margin, project-based home services platform. By integrating product sales, installation, and financing, BBB aims to increase its average transaction size and margins as it competes in the growing home improvement market.

The details

The transaction, valued at roughly $150 million, includes $37 million in cash and approximately 16 million shares of BBBY common stock. It also includes $40 million in financing from F9's existing lender. F9 Brands generated approximately $522 million in net sales last year and has around $130 million in inventory. The deal will see F9 Brands president and CEO Jason Davis become the CEO of BBB's Beyond Home Services division and join the company's executive leadership team.

  • The transaction is expected to close after BBB Inc.'s annual shareholder meeting in May 2026.

The players

Bed Bath & Beyond Inc.

A major American home goods retailer that is expanding its business model into higher-margin, project-based home improvement categories.

F9 Brands Inc.

A portfolio of businesses in the building products, home improvement, and luxury home decor industries, including Gracious Home.

Jason Davis

The president and CEO of F9 Brands since 2019, who will become the CEO of BBB's Beyond Home Services division and join the company's executive leadership team.

Got photos? Submit your photos here. ›

What they’re saying

“Each brand owns a distinct category – modular storage systems, custom closets, flooring, cabinets and countertops, carpet and hard surface flooring distribution – and together with our installation services and field sales organization, we can take the homeowner through the full lifecycle of a renovation, all under one platform.”

— Marcus Lemonis, Executive Chairman and CEO of Bed Bath & Beyond Inc.

What’s next

The transaction is expected to close after Bed Bath & Beyond Inc.'s annual shareholder meeting in May 2026, following customary due diligence, definitive documentation, and regulatory approvals.

The takeaway

Bed Bath & Beyond's acquisition of F9 Brands, including the iconic Gracious Home brand, is a strategic move to transform the company's business model from traditional retail to a higher-margin, project-based home services platform. By integrating product sales, installation, and financing, BBB aims to increase its average transaction size and margins as it competes in the growing home improvement market.