Bed Bath & Beyond (NASDAQ:BBBY) has purchased online retailer One Kings Lane for an undisclosed and nonmaterial sum. It's the latest in a recent spate of acquisitions of e-commerce merchants by traditional operators.
At one time, One Kings Lane was valued at more than $912 million and has raised roughly $225 million in capital, according to TechCrunch. As a privately held company, One Kings Lane is not required to divulge the purchase price, but the purchase is being made with cash and Bed Bath & Beyond had less than $600 million on hand at the time deal was struck.
It's unclear just what the synergies are or how One Kings Lane will be integrated into existing operations. The acquisition does extend Bed Bath & Beyond's reach into new and growing product categories such as furniture and home decor.
"We have followed One Kings Lane and loved its site since its inception, and we are thrilled for the opportunity to provide them with additional support and exposure to promote and grow their brand," Bed Bath & Beyond CEO Steven Temares said in a statement. "At the same time, One Kings Lane will serve as a cornerstone for Bed Bath & Beyond's growing offerings in furniture and home decor, and together we will be able to do even more for and with our collective customers wherever, whenever and however they wish to interact with us, and to further our mission to be viewed as the expert for the home."
One Kings Lane began as a flash sale site and later grew into a full-fledged e-commerce operation. But the company has struggled as the popularity of flash sales ebbs, and its absorption into a traditional retailer mirrors that of Gilt Groupe, now part of Hudson's Bay, which paid $250 million for the company.
- see this Bed Bath & Beyond statement
- see this TechCrunch story
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