06:03 AM EDT, 10/16/2024 (MT Newswires) -- (Updates with the stock move in the headline and third paragraph.)

Container Store Group ( TCS ) said late Tuesday that Beyond (BYON) agreed to invest $40 million in the company.

The companies expect the partnership to position Container Store ( TCS ) to return to profitable comparable store growth by utilizing Beyond's "intellectual property, customer data, network of brands, and affiliate relationships."

Container Store ( TCS ) stock was up 32% in recent premarket activity Wednesday.

The terms and conditions of the preferred equity transaction between the two companies include an amendment of the Container Store's ( TCS ) credit facilities in a "manner commercially acceptable to Beyond."

Container Store ( TCS ) will issue about 40,000 newly created series B preferred shares to Beyond as part of the deal. After certain conditions are met, the preferred stock would convert to common stock at $17.25, resulting in Beyond owning about 40% of the Container Store's ( TCS ) common equity.

Price: 14.11, Change: +3.41, Percent Change: +31.87