By Katy B. Olson
Bed Bath & Beyond acquired One Kings Lane in an all-cash deal that the big-box retailer’s CEO says will let the brand serve as a “cornerstone” for its growing home decor and furniture categories.
OKL will be a wholly-owned subsidiary of Bed Bath & Beyond and will be an independent brand under the company's umbrella, integrated into its share services model. The OKL brand itself will also be promoted, said the company.
“We have followed One Kings Lane and loved its site since its inception,” says Steven Temares, Bed Bath & Beyond CEO. “We are thrilled for the opportunity to provide them with additional support and exposure to promote and grow their brand. At the same time, One Kings Lane will serve as a cornerstone for Bed Bath & Beyond’s growing offerings in furniture and home decor, and 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 CEO and board member; Dinesh Lathi, One Kings Lane CEO
Valued at $912 million by Forbes in 2014, the home decor site was sold for a sum that Bed Bath & Beyond termed “not material.” The purchase didn’t impact the retailer’s fiscal 2016 first quarter, which ended on May 28, 2016. The company said in a statement that it “expects this transaction to be slightly dilutive to its net earnings per diluted share for fiscal 2016, after transaction and integration costs.” Bed Bath & Beyond will announce its fiscal 2016 first quarter financial results on June 22.
“We are excited to be part of the Bed Bath & Beyond family,” says Dinesh Lathi, One Kings Lane CEO. “This is a tremendous opportunity for our customers, as well as our employees and business partners, to benefit from additional support and resources and gain exposure to new customers. We look forward to being able to continue to differentiate our product offerings and refine our point of view to further delight our current and future customers.”
One Kings Lane was founded in 2009 by Alison Pincus and Susan Feldman and has received funding from investors like Kleiner Perkins, Greylock Partners and Mousse Partners. It recently expanded its trade program and also opened its Studio concept in San Francisco, which connects the site’s designers with clients.