Vitamin Shoppe Owner Goes Private in $2.6B Deal — Retail Bum

Franchise Group, the parent company of Vitamin Shoppe, is being taken private by a consortium led by CEO Brian Kahn for $2.6 billion.

The acquisition is also being supported by private equity firm Irradiant Partners and B. Riley Financial Inc. It will pay $30 per share, which is slightly above the company’s stock closing price of $29.92 on January 9, 2023, a day before the buyout reports first came to light.

The deal, which represents an equity value of nearly $1.05 billion, is expected to close in the second half of 2023. Post completion, Kahn and the rest of the management team at Franchise Group will continue to lead the company.

Franchise Group currently operates more than 3,000 stores in the U.S. Aside from Vitamin Shoppe, its brand portfolio includes Buddy’s Home Furnishings and discount furniture store American Freight.

The company reported losses in the quarter ending April 1 compared to last year, prompting it to draw back its 2023 forecast, according to Reuters.

In March 2023, Vitamin Shoppe received a billion-dollar buyout offer from an undisclosed company. At the time, it was speculated that the potential buyer might be coming from the inside as just a few months ago, the company’s CEO Brian Kahn led a management-buyout offer to take the company private for $30 to $35 per share.

Originally published at https://retailbum.com on May 11, 2023.