Kroger and Vitacost Complete Merger
CINCINNATI, OH & BOCA RATON, FL – The Kroger Co. has successfully closed its acquisition of Vitacost.com Inc with Kroger’s tender offer to purchase all outstanding shares of common stock of Vitacost.com for $8.00 per share in cash.
Street Insider quotes Analyst Stephen Grambling as saying, “We continue to believe the deal provides KR with a testing bed in direct distribution, adds talent to its digital staff, and complements its expanded natural and organic offering, all critical in positioning the company to benefit from secular shifts in the industry."
As we reported earlier, the $280 million purchase is expected to complement Kroger’s strategy to enter new markets, as well as Harris Teeter’s online order and pick up service.
Kroger expects to complete the acquisition of the remaining eligible shares as well. When the merger is complete, Vitacost.com shares will cease to be traded on the NASDAQ, according to a press release.
RTT News reports that as of the expiration of the tender offer, approximately 29.84 million shares were validly tendered and not withdrawn. This figure represents 86.68% of Vitacost.com’s outstanding shares.
Kroger CEO Rodney McMullen expressed his support of the deal noting that 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.
For the full story on this merger proposal, check out our previous article by clicking here.
Stay tuned to AndNowUKnow as we continue to track the potential effects this merger will have.
