The Vitamin Shoppe Operator Receives Unsolicited Non-Binding Acquisition Proposal for All Outstanding Shares
Reports indicate that Franchise Group could be considering going private in a management buyout
Franchise Group, which owns and operates several brands, including The Vitamin Shoppe, has received an unsolicited non-binding acquisition proposal for all outstanding shares of common stock at $30 per share in cash.
The identity of the potential buyer was not revealed.
The group, which operates over 3,000 locations across its business lines, says its Board of Directors will evaluate the proposal to determine the course of action it believes is in the best interest of Franchise Group and all stockholders.
The outstanding shares acquisition proposal values The Vitamin Shoppe parent Franchise Group at $1.05 billion, per Retail Dive.
It should be noted that Franchise Group made no assurance that the non-binding proposal would result in a transaction.
In 2022, Kohl’s and Franchise Group entered a three-week discussion to finalize financing agreements until the department store retailer called off talks to sell its business to the group.
Earlier this year, The Wall Street Journal reported that Franchise Group is considering going private in a management buyout, with the management team, led by CEO Brian Kahn, possibly paying between $30 and $35 a share.
In February, The Vitamin Shoppe announced it would enter a new era in franchising, with 234 territories available and 12 franchise locations expected to open this year.
The New Jersey-based supplement and wellness company recently celebrated 46 years in business, with nearly 70% of its revenue coming from repeat customers. The Vitamin Shoppe also pushed into the CBD market, adding a ‘CBD headquarters’ concept in some of its brick-and-mortar locations and online.
In addition to The Vitamin Shoppe, Franchise Group’s lines include Pet Supplies Plus, Wag N’ Wash, American Freight, Badcock Home Furniture & More, Buddy’s Home Furnishings, and Sylvan Learning.
