The Vitamin Shoppe’s parent company, Franchise Group, has received a billion-dollar buyout offer.
While the company did not reveal the details of the buyer, it said the company is carefully evaluating the proposal to determine the course of action that it believes is in the best interests of the company and all its stockholders.
It is possible that the potential buyer might be coming from the inside as just two months ago as the company’s CEO Brian Kahn led a management-buyout offer to take the company private for $30 to $35 per share.
Kahn, along with Vintage Capital Management and its affiliates, owned 40.2% of Franchise Group’s outstanding common stock at the end of 2022.
The news comes nine months after the Franchise Group attempted to acquire Kohl’s for $9 billion or $60 per share. However, the deal was rejected by the department store chain when Franchise Group lowered its offer to $53 per share, drawing criticism from analysts for moving too slowly in a shaky retail environment.
The acquisition would have further added to Franchise Group’s debt load, which it sees as a significant risk to its business.
The Franchise Group currently operates over 3,000 locations, predominantly in the U.S., that are company-run or operated under franchising and dealer agreements.
