“We are excited to partner with The Vitamin Shoppe team and help them build upon the success the business has enjoyed over the last 48 years,” Kingswood Partner Michael Niegsch and PIP Partner Mark Genender shared in a joint statement.
“We plan to make significant investments in the company’s third-party brand relationships, research and development across The Vitamin Shoppe’s owned proprietary brand portfolio, upgrades to the store fleet and improvements to the omni-channel digital platform to deliver the best possible experience to customers.”
Details of the transaction, which is expected to close later in the second quarter of this year pending a bankruptcy judge’s approval, were not disclosed. Bloomberg Law reported the cost of the deal at $193.5 million.
The road to acquisition
Headquartered in Secaucus, NJ, The Vitamin Shoppe was founded in 1977 by pharmacist Jeffrey Horowitz and opened its first store in New York City selling pills and powders to supplement healthy lifestyles.
By the time it was sold to an affiliate of a private equity unit of Bears Sterns for close to $10 million in 2002, the specialty retailer had over 150 stores across the country with monthly grand openings programmed for 2003.
In 2009, The Vitamin Shoppe went public through an initial public offering on the New York Stock Exchange (NYSE) before its 2019 acquisition by Franchise Group as part of an all-cash $208 million deal. The latest deal comes after Franchise Group filed for bankruptcy late last year citing the need to de-lever the company’s balance sheet as pivotal to enabling businesses in its portfolio, including The Vitamin Shoppe, to realize their full potential.
“The Vitamin Shoppe’s business is healthy and strong, with sustainable cash flow and dynamic growth initiatives that remain in motion,” a spokesperson from The Vitamin Shoppe told NutraIngredients at the time. “The debt obligations of our parent company necessitated this strategic financial step, which is not reflective of The Vitamin Shoppe’s own financial stability, ongoing commitment to serving our communities, and promising roadmap for future growth.”
Building on past success
Since its humble beginnings, The Vitamin Shoppe has grown into a global omnichannel operation, stocking some 700 national brands and its owned portfolio of proprietary products both in store (under The Vitamin Shoppe and Super Supplements banners) and online.
In May 2024, the company launched its WholeHealth Rx platform—a comprehensive solution that integrates prescription medications such as GLP-1s and testosterone replacement therapy with dietary supplements and expert health guidance. Most recently, The Vitamin Shoppe introduced its “Hometown Stores” marketing initiative, a strategic collaboration with leading sports nutrition brands including Gorilla Mind, EHPlabs, Bucked Up, RYSE and RAW Nutrition to bring immersive, co-branded retail experiences to select store locations in each brand’s own backyard.
“The Vitamin Shoppe is the perfect partner for emerging and growing brands that can benefit from access to over 650 retail doors and The Vitamin Shoppe’s millions of loyalty members at a time in history when it is more important than ever for these brands to demonstrate success and traction in physical retail as well as online,” Niegsch and Genender stated.
Jefferies LLC is serving as exclusive financial advisor to Kingswood and PIP, and McDermott Will & Emery LLP and Sidley Austin LLP are serving as legal counsel. Ducera Partners LLC is serving as investment banker, and Kirkland & Ellis LLP is serving as legal counsel to FRG.
