Kroger to buy Vitacost.com, a Boca Raton online retailer [Sun Sentinel :: ]
(South Florida Sun Sentinel (FL) Via Acquire Media NewsEdge) July 03--Supermarket giant The Kroger Co. announced Wednesday an agreement to buy online retailer Vitacost.com for $280 million.
Boca Raton-based Vitacost sells more than 45,000 healthy living products, including vitamins, supplements and personal care items to about 2.3 million active customers.
Kroger plans to buy Vitacost's outstanding shares at $8 per share in cash, about $280 million. The purchase price represents a premium of 51 percent to Vitacost's closing share price on Feb. 19, the day before a major Vitacost shareholder publicly requested that the company evaluate strategic alternatives, Kroger said in a statement.
The transaction is expected to close in the third quarter of the year.
The acquisition will help Kroger serve customers through ship-to-home orders in all 50 states, including 16 states where Kroger doesn't have stores, the Cincinnati-based retailer said.
Vitacost reported $382.7 million in net sales in 2013, up 15.7 percent from 2012.
Once the deal is complete, the South Florida company will operate as a subsidiary of The Kroger Co. and keep its offices in Boca Raton, its distribution facilities in North Carolina and Nevada and customer service center in North Carolina.
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