Bed Bath & Beyond announced June 9 that it will acquire Installed Right and SFV Services, a 20-year-old company for construction and facilities management projects.

The move expands Beyond Home Services, a division of Bed Bath & Beyond, the retailer said. Bed Bath & Beyond said its acquisition of Installed Right and SFV Services adds capabilities “that further differentiate” it from traditional retailers. Those services include installation, renovation, construction and project-execution, according to the retailer’s announcement.

Bed Bath & Beyond previously said its “Beyond Home Services” will combine brands across cabinets, flooring and closets. It will also include distribution with installation services, as well as financing solutions, according to the retailer.

Founded in 2006 and headquartered in Detroit, Michigan, SFV Services is the parent company of Installed Right. On its website, SFV Services said it has completed more than 1,000 national construction and facilities management projects for commercial clients.

In the announcement, Bed Bath & Beyond CEO Marcus Lemonis said acquisitions “are not only about adding revenue” or earnings. “They are about acquiring capabilities that make our platforms and Everything Home ecosystem more valuable.”

Lemonis said SFV Services’ “experience executing store remodels, fixture installations and retail construction projects also supports our capital-light store conversion strategy, providing additional expertise as we continue expanding and refining our physical footprint. … The home services market remains highly fragmented, and we believe there is a significant opportunity to continue consolidating complementary businesses under the Beyond Home Services banner.”

Bed Bath & Beyond ranks No. 99 in the Top 2000 Database. The database ranks North America’s largest online retailers by their annual ecommerce sales and more.

Why Bed Bath & Beyond acquired SFV Services

“Our diligence was straightforward,” Lemonis said. “We found a business with a long history of performance, a reputation for consistency, and a founder-led culture that understands what it takes to operate successfully on a national scale. We were able to evaluate years of real-world execution through longstanding relationships with companies like Lumber Liquidators and Cabinets To Go, and saw both strong customer reviews and durable financial results.”

Bed Bath & Beyond announced in April that it acquired Lumber Liquidators, Cabinets To Go and other F9 Brands’ assets. In that announcement, Bed Bath & Beyond said the acquisition of F9 Brands would represent “a shift from traditional retail into higher-ticket, higher-margin, project-based categories including kitchens, flooring and custom storage.” Bed Bath & Beyond said at the time that it believes it can increase its average transaction size and margin by combining product, installation and financing into one experience.

The retailer disclosed terms from its acquisition agreement. It will acquire Installed Right and SFV Services “in a transaction consisting entirely of Bed Bath & Beyond common stock.”

Bed Bath & Beyond said the acquired businesses generated about $60 million in combined revenue and about $5 million in adjusted EBITDA during its most recent full fiscal year. Furthermore, Bed Bath & Beyond said it will issue about 7.2 million shares of common stock to the sellers.

“By accepting stock consideration, the Rosen family has elected to become long-term shareholders in Bed Bath & Beyond and participate in the future growth of Beyond Home Services,” the retailer said.

The companies expect to complete the acquisition process by the end of June. They said it is subject to final documentation and diligence. Additionally, Bed Bath & Beyond expects its acquisition “to be immediately accretive to adjusted EBITDA.”

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