The Kroger Co has sold its online health and wellness retail business, Vitacost.com, to IHerb for an undisclosed sum.
The deal is part of Kroger’s strategic review of its non-core assets, which is ultimately aimed at simplifying its operations and strengthening its core business.
“The sale of Vitacost is an important step in that process,” said Ron Sargent, Kroger’s chairman and CEO. “We believe IHerb is well-positioned to help Vitacost reach its full potential outside of Kroger, and we are working together to ensure a smooth transition for associates and customers.”
Kroger acquired Vitacost.com for $280 million in 2014. The company said the transaction, which closed on January 8, would not impact its previously issued financial guidance for FY25.
The company’s total sales for the third quarter ended November 8 edged up 0.7 per cent to $33.9 billion.
Founded in 1996, IHerb is an online retailer specializing in health and wellness products, including vitamins, supplements, sports nutrition, beauty, and grocery items. The company offers products from roughly 2000 brands to customers across 180 countries through its network of fulfillment centers.
Emun Zabihi, CEO of IHerb, said the acquisition represents a strategic investment.
“Vitacost’s strong brand equity and established customer base complement IHerb’s global platform and capabilities, enabling us to further strengthen our leadership in the online health and wellness market,” Zabihi added.