Bed Bath & Beyond Paid Just $12 Million for One Kings Lane

October 11, 2016, 8:08 PM UTC
A Bed Bath & Beyond Inc. Store Ahead Of Earnings Figures
Shopping carts are lined up in front of a Bed Bath & Beyond Inc. store in Springfield, Virginia, U.S., on Monday, Sept. 21, 2015. Bed Bath & Beyond Inc. is scheduled to release earnings figures on Sept. 24. Photographer: Andrew Harrer/Bloomberg via Getty Images
Photograph by Bloomberg via Getty Images

Bed Bath & Beyond paid just $11.78 million to acquire online retailer One Kings Lane earlier this year, according to recently-filed regulatory documents.

The deal was publicly announced in June, but Bed Bath & Beyond (BBBY) only would say that the “purchase price was not material” to the company, which currently has an enterprise value of around $7.6 billion. One press report suggested a price tag south of $30 million, but it seems even that estimate was way too high.

What Bed Bath & Beyond actually paid underscores how far One Kings Lane fell below investor expectations.

One Kings Lane was launched in 2009 by Ali Pincus and Susan Feldman as a Los Angeles-based flash sales site focused on high-end furniture and home decor. It would go on to raise more than $200 million in venture capital funding, from big-name firms like Greylock, Kleiner Perkins, Institutional Venture Partners, and Tiger Global. Its final outside funding round came in early 2014, at a post-money valuation north of $800 million.

The $11.78 million price-tag is net of any acquired cash. Bed Bath & Beyond also said in its regulatory filing that the results of One Kings Lane’s post-acquisition operations have not been material.

A Bed Bath & Beyond spokeswoman has not yet responded to a request for comment.

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