The Vitamin Shoppe's Parent Company Offered $1B Buyout
Franchise Group Inc., which owns The Vitamin Shoppe, Pet Supplies Plus, and five other companies, received an unsolicited $1.05 billion acquisition offer Monday, the company reported. The offer, presented by an unknown buyer, is for $30 per share in cash. Franchise Group Inc. said its board of directors is carefully evaluating the proposal "to determine the course of action that it believes is in the best interests" of the company and its stockholders.
Shares of Franchise Group jumped by more than 10 percent on Monday following the company's announcement, according to MarketWatch.
Total Retail's Take: Last year, Franchise Group was engaged in negotiations with Kohl's to buy out the department store, but Kohl's rejected a $53-per-share takeover bid in June. The Franchise Group has built its brand portfolio by acquiring a collection of diverse and emerging brands, expanding the reach of those brands through a franchising platform. In its most recent earnings report released in February, Franchise Group reported gains in revenue, but losses in income for the fourth quarter, and for its 2022 fiscal year. The Wall Street Journal reported earlier this year that the company is considering going private through a buyout deal led by CEO Brian Kahn.