UNION, N.J. (AP) — Bed Bath & Beyond Inc. is buying home goods retailer Cost Plus Inc. for about $495 million as it looks to offer a bigger variety of products to its customers.
Bed Bath & Beyond said Wednesday that it will pay $22 for each Cost Plus share, a 22 percent premium to Cost Plus' closing price of $17.99 on Tuesday.
The data tracker FactSet says Cost Plus currently has about 22.5 million outstanding shares.
Both companies' boards have unanimously approved the deal, which is expected to close during Bed Bath & Beyond's fiscal second quarter. The transaction will be funded with available cash.
Shares of Union, N.J.-based Bed Bath & Beyond fell $1.48, or 2.2 percent, to $66.75 in morning trading. Shares of Oakland, Calif.-based Cost Plus had not yet opened.