“Following a careful and disciplined assessment, the board of directors has concluded that the acquisition proposal from Liberty Tax maximizes value for our shareholders. The transaction also delivers long-term benefits to our associates, customers and business partners. It provides an immediate premium to our current shareholders and aligns The Vitamin Shoppe with a partner that shares our strategic vision to unlock the further potential of The Vitamin Shoppe as a leader in health and wellness. We are committed to transforming into an agile, customer-first organization that differentiates our brand through best-in-class quality, innovation and expertise across our products and services,” Sharon Leite, CEO of The Vitamin Shoppe, said.
Under terms of the acquisition, The Vitamin Shoppe shareholders will receive $6.50 per share they own.
“We have great confidence in the value of The Vitamin Shoppe, its ongoing strategic reinvention plan and the outstanding efforts of The Vitamin Shoppe leadership team and associates. We believe that The Vitamin Shoppe is an excellent fit for Liberty Tax’s previously announced strategy to acquire franchise-centric businesses, and demonstrates the commitment of Liberty Tax, its board and management team to implement the previously announced strategic transformation of Liberty Tax,” Pat Cozza, member of the board of directors, Liberty Tax, said.
Liberty Tax is the parent company of Liberty Tax Service and Buddy’s Home Furnishings.
Kirkland & Ellis LLP acted as legal counsel and BofA Merrill Lynch acted as the financial advisor to The Vitamin Shoppe. Troutman Sanders LLP acted as legal counsel to Liberty Tax.
The deal is expected to close in the fourth quarter of 2019.