Signage will be displayed outside a Pet Bath & Beyond Inc. store in Los Angeles, California, USA on Monday, September 19, 2016.
Patrick D. Fallen | Bloomberg | Getty Images
Pet Path & beyond said on Monday that Cost Plus was selling to the global market because it aims to stabilize sales and focus on its core business.
The home appliance retailer has announced a deal with Kingswood Capital Management, a Los Angeles-based private equity firm that will buy the Cost Plus global market. The sale includes the brand’s 243 brick and mortar spaces, digital business, two distribution facilities and a corporate office in Alameda, California. Pet Bath & Beyond did not disclose the terms of the deal, but said it expects it to close before the end of the February 2021 fiscal year.
The company also said it was accelerating stock purchases. It said it had approved a $ 150 million share repurchase plan over the $ 225 million plan announced at the end of October. It plans to complete them by the end of February 2021. Through the expanded plan, it will repurchase up to $ 825 million worth of shares over the next three years.
“Throughout the year we have taken planned steps to streamline our portfolio and strengthen our strategic focus on home, baby and beauty and health. Today’s announcement marks the end of this work,” said Mark Triton, CEO of Pet Bath & Beyond.
Shares rose about 1.5% in early trading on Monday. As of Friday’s close, they have risen about 11% so far this year, bringing the company’s market value to $ 2.4 billion.
Pet Bath & Beyond is in the midst of a breakthrough effort led by target business expert Triton. The home retailer tapped the executive last year as its new CEO, believing he could boost its strategy for its stores and e-commerce business. At Target, he rocked the look of stores, introduced private labels and facilitated corporate collaborations with popular brands such as Vineyard Wines and Hunter Boots.
In October, Triton laid out a three-year roadmap to get the company back on track. It said it would close inactive stores and focus on gaining market share in key segments such as home and child. It plans to launch more than 10 private label brands starting in the spring.
The company has excluded other brands to release capital to invest in its own brand. In early October, the home appliance retailer agreed to sell its Christmas tree stores, its linen holdings business and a distribution center in Florence, New Jersey.