Bed, Bath & Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report climbed in premarket trading Tuesday after the home-goods retailer said it would sell its PersonalizationMall.com to 1-800-Flowers.com (FLWS) - Get 1-800-FLOWERS.COM, Inc. Class A Report for $252 million.
Shares of Bed Bath were 2.2% higher at $11.42, while 1-800-Flowers.com was up slightly to $16.59.
Founded in 1998, PersonalizationMall.com is an online retailer of personalized products.
"This transaction is another important step towards simplifying our portfolio and deepening our focus on our core home, baby and beauty businesses," Mark Tritton, Bed Bath & Beyond's president and CEO, said in a statement.
Tritton added that "by unlocking valuable capital from within our business, we can accelerate the company's ongoing business transformation and our efforts to re-establish Bed Bath & Beyond's authority in the home space."
Last month, Tritton, who was recently named to the top posts, pledged a "bold pivot" as he said six members of Bed Bath & Beyond's executive team, including its chief marketing, merchandising, legal and digital officers, would leave.
Chris McCann, 1-800-Flowers.com CEO, said PersonalizationMall.com has achieved steady financial growth for the past several years.
“We expect PersonalizationMall.com to be accretive to our top- and bottom-line results in fiscal 2021,” he said.
The acquisition includes the PersonalizationMall.com website and its new, state-of-the-art 360,000-square-foot production and distribution facility in Bollingbrook, Ill.
PersonalizationMall.com will continue to provide product and personalization services to Bed Bath & Beyond and buybuy BABY.
Subject to conditions including antitrust clearance, the transaction is expected to close during the Union, N.J., retailer's fiscal 2020 first quarter.
Last week, the retailer's shares tumbled after the company posted an unexpected loss and said it was withdrawing its full-year guidance because of weakness in the current quarter.
Also last week, the company closed a sale-and-leaseback deal on a chunk of its real estate, generating $250 million of proceeds.