Kroger to buy vitamin seller Vitacost.com

Associated Press |

NEW YORK (AP) — Supermarket chain Kroger said Wednesday that it is buying online vitamin seller Vitacost.com Inc. in a deal the company said is valued at $280 million.

Kroger said Vitacost.com will help it expand online and give it access to Vitacost.com's shipping network and two distribution centers.



Cincinnati-based Kroger said it will pay $8 per share in cash for Vitacost.com, a 27 percent premium of its closing price of $6.28 Tuesday. The total purchasing price includes stock warrants and options. Vitacost.com, which is based in Boca Raton, Florida, will operate as a subsidiary of Kroger.

The deal is expected to close in the third quarter.

Kroger said Vitacost.com sells 45,000 products, including minerals, herbs, supplements and organic foods, to about 2.3 million customers. Vitacost.com reported revenue of $382.7 million last year.

"Vitacost.com's core focus on healthy living products is complementary to our fast-growing natural foods business," said Kroger CEO Rodney McMullen.

Kroger Co. runs more than 2,600 supermarkets around the country, including City Market, Dillons and Ralphs stores.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
SKTPP Skytop Lodge Corp 7% pfd 200.00 0.00 0.00 0

Comments

Emerging Growth

First Bitcoin Capital Corp

First Bitcoin Capital Corp is a Bitcoin consolidator. The Company is engaged in Bitcoin mining, payment processing, online products sales and other Bitcoin related business including transfer of crypto-currency.

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

Mesa-Marshall 2 Well Project

MESA Resources ("MESA") is sponsoring the development of the two well direct drilling project -- "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development of…