Bed Bath & Beyond (BBBY) announced it will acquire online retailer of personalized products PersonalizationMall.com for $190 million in cash, a move that expands its e-commerce presence.
Burr Ridge, Ill.,-based "PMall" sells products including wine, clothing, holiday decorations, toys, kitchenware, office supplies and jewelry, according to its website.
PMall "has developed a fully-integrated, proprietary technology platform that drives quality, speed and efficiency throughout the process of personalizing a breadth of products to each customer's unique preference," Bed Bath & Beyond said in a statement Wednesday afternoon.
Bed Bath & Beyond said acquiring PMall will let the company advance towards its goal of being "the expert for the home and to become the destination for customers' needs and wants as they express their life interests."
"(PMall has) built a tremendous business, and we are excited to support them as they advance their industry-leading position within the growing category of product personalization," Bed Bath & Beyond CEO Steven Temares said in today's statement.
The company's plans for PMall include upgrading its website and enhancing its product mix, Temares said.
While KeyBanc Capital Markets analysts said in a research note late this afternoon that the deal will "have no material impact" on Bed Bath & Beyond's third quarter earnings, expected to be released late next month, they "applaud BBBY's willingness to invest in acquisitions and improve its e-commerce offerings."
The KeyBanc analysts said Bed Bath & Beyond is "taking the right steps to create a stronger, more competitive company" but did not adjust its "underweight" rating and $35 price target on the company's stock.
Bed Bath & Beyond said it expects the all-cash acquisition to be slightly accretive to its 2016 full year net earnings per diluted share.
Goldman Sachs served as financial adviser to Bed Bath & Beyond while William Blair advised PMall on the transaction.
Shares of Bed Bath & Beyond fell 32 cents to $45.41 on Wednesday.