Kroger bolsters position in nutrition and wellness products space
Just a month and a half after Kroger announced plans to acquire e-commerce retailer Vitacost.com, the company completed the merger. According to Kroger, Vitacost.com's position in the nutrition and wellness products space, including its proprietary brands, complements its natural foods business and Simple Truth Organic and Simple Truth corporate brand offering.
Kroger purchased all outstanding shares of common stock of Vitacost.com for $8 per share in cash. The tender offer expired at 5 p.m., EDT, on August 15.
Vitacost.com offers more than 45,000 products including vitamins, minerals, herbs, supplements, sports nutrition, beauty care products and natural and organic foods to approximately 2.3 million active customers. The company has more than 800 associates and operates distribution centers in Lexington, North Carolina, and Las Vegas, Nevada, and a customer service center in Lexington, North Carolina.
"We are delighted to welcome Vitacost.com to the Kroger family," said Rodney McMullen, Kroger's CEO, back in July. "Vitacost.com's talented team has built an exceptional online retail destination in the growing nutrition and wellness market, with an enviable technology and fulfillment infrastructure. This merger is in line with our growth strategy to enter new markets and new channels, and — along with Harris Teeter's online order and pickup service — accelerates our efforts to provide customers with even more ways to shop. Vitacost.com's core focus on healthy living products is complementary to our fast-growing natural foods business, and we intend to grow Vitacost.com's strong position in the online nutrition market. At the same time, we will build on Vitacost.com's e-commerce platform by integrating it with our existing digital offerings to create exciting new levels of personalization and convenience for our customers."
The online retailer’s platform will enable Kroger to serve customers through ship-to-home orders in all 50 states, including 16 states that are currently not served by Kroger supermarkets, expanding Kroger's reach into new U.S. markets as well as internationally. Vitacost.com's website and mobile app offer product information, content including recipes, videos and customer reviews, and "Set & Save" subscriptions for thousands of items.
Following closing, Vitacost.com will operate as a subsidiary of Kroger and continue to operate its facilities in Boca Raton, Florida, Lexington, North Carolina, and Las Vegas, Nevada.