Private equity companies Kingswood Capital Management and Performance Investment Partners (PIP) have agreed to buy The Vitamin Shoppe business from its parent, Franchise Group, which is currently trading under Chapter 11 bankruptcy protection.
Kingswood will pay $193.5 million for the business, which comprises a network of 650 company-operated retail stores trading under The Vitamin Shoppe and Super Supplements, as well as an online store. The deal is expected to be settled mid-next month, subject to securing regulatory approvals and customary closing conditions.
Headquartered in Secaucus, New Jersey, The Vitamin Shoppe describes itself as “a global, omnichannel specialty retail and wellness lifestyle company with the mission of providing customers with the most trusted products, guidance, and services to support them on their journeys of lifelong wellness”. It stocks products from around 700 national brands, including homeopathic remedies, sports nutrition and CBD lines.
Kingswood partner Michael Niegsch and PIP partner Mark Genender said the new owners are looking to work with The Vitamin Shoppe’s team to build upon the business’s 48-year legacy.
“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 omnichannel digital platform to deliver the best possible experience to customers,” the pair said in a statement.
“Further, 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.”
Both private equity firms specialise in ‘middle market’ businesses, which can benefit from capital investment. Kingswood’s current retail investments include Obsession Holdings – which owns Perfumania and The Fragrance Outlet – and Save Mart, the California–based grocery chain that operates some 200 Save Mart, Lucky California, and FoodMaxx stores in the California Central Valley and Northern Nevada.
PIP, established just last year to focus on consumer-facing businesses, has made The Vitamin Shoppe its inaugural investment.
