Bed Bath & Beyond Acquires One Kings Lane in E-Commerce Pushby
Bed Bath & Beyond Inc. acquired the e-commerce site One Kings Lane Inc. for an undisclosed sum, turning to a formerly high-flying startup to expand its online offerings.
The transaction won’t affect Bed Bath & Beyond’s first-quarter results because the deal occurred after the period ended on May 28, according to a statement Tuesday. The acquisition price wasn’t material to the company, but it may dilute earnings this year when transaction and integration costs are included, Bed Bath & Beyond said.
One Kings Lane was part of a wave of startups pursuing so-called flash sales, a hot category when the company was founded in 2009. But the business lost cachet after many consumers tired of the format and shifted away from daily deals. Gilt Groupe Holdings Inc. went through a similar life cycle: After once being valued at about $1 billion, Gilt was bought by Hudson’s Bay Co. for about $250 million this year.
Bed Bath & Beyond will use One Kings Lane to expand its product range and reach more customers, Chief Executive Officer Steven Temares said. The e-commerce site, which was backed by venture firms such as Kleiner Perkins Caufield & Byers, specializes in home furnishings.
“One Kings Lane will serve as a cornerstone for Bed Bath & Beyond’s growing offerings in furniture and home decor,” he said in the statement. “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."
Bed Bath & Beyond is slated to release its first-quarter results on June 22.