Two private equity firms, Kingswood Capital Management and Performance Investment Partners, have entered into a definitive agreement to acquire The Vitamin Shoppe, which sells vitamins, nutritional supplements and wellness products, from Franchise Group Inc.
Details of the transaction, which is expected to close later in the second quarter of this year, were not disclosed.
The Vitamin Shoppe operates more than 650 retail stores under The Vitamin Shoppe and Super Supplements banners, and an e-commerce website. Much of the assortment is composed of proprietary brands, namely The Vitamin Shoppe, Vthrive The Vitamin Shoppe, BodyTech, BodyTech Elite, plnt, ProBioCare and True Athlete. Last fall, The Vitamin Shoppe rolled out testosterone replacement therapy prescriptions to its telehealth platform Whole Health Rx, which first launched in May 2024 with weight loss drugs like Ozempic.
In a joint statement Wednesday, Kingswood partner Michael Niegsch and PIP Partner Mark Genender said: “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. 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.”
Kingswood targets companies in the services, consumer, industrials and distribution sectors. It typically invests between $50 million and $150 million, with the capacity for larger investments through co-investment opportunities. Recent investments were Mountain Equipment Co-op, a Canadian outdoor retailer, through a court-supervised process, and the Save Mart grocery chain. Performance Investment Partners focuses on investing in consumer-facing businesses.
The Franchise Group filed for filed for Chapter 11 bankruptcy protection last November and has scheduled a hearing on May 12 seeking court confirmation of its reorganization plan. Aside from The Vitamin Shoppe, the Franchise Group’s portfolio includes Pet Supplies Plus, American Freight, Badcock Home Furniture, Buddy’s Home Furnishings and Sylvan Learning.