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 to return to profitable comparable store growth by utilizing Beyond's "intellectual property, customer data, network of brands, and affiliate relationships."

Container Store stock jumped 36% in after-hours activity.

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

As part of the deal, Container Store will issue about 40,000 newly created series B preferred shares to Beyond.

The preferred stock would convert to common stock at $17.25, after certain conditions, resulting in Beyond owning about 40% of the Container Store's common equity.

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