The Vitamin Shoppe, North Bergen, NJ, has entered into an agreement to purchase the assets of Super Supplements, Inc., Seattle, WA, a specialty retailer of vitamins, minerals and supplements. The acquisition of Super Supplements is said to cost approximately $50 million, and will be funded with available cash. Super Supplements operates 31 stores in Washington, Oregon and Idaho, and will expand the Vitamin Shoppe's presence in the Pacific Northwest where it currently operates 17 stores. The transaction, which is structured as a purchase of Super Supplements' assets by a wholly owned subsidiary of the Vitamin Shoppe, is expected to close on December 31, 2012 and is subject to customary closing conditions.
Looking ahead, the Vitamin Shoppe expects Super Supplements to contribute approximately $75 million in revenue in 2013 and be neutral to slightly positive to earnings per share in the upcoming year as operating income contribution is offset by integration costs.
Commenting on the acquisition, Tony Truesdale, the Vitamin Shoppe's CEO stated, “Super Supplements shares our same values and commitment to health and wellness and will be a strategic and cultural fit for the Vitamin Shoppe. Super Supplements is an established retailer with a strong track record of providing a broad selection of high quality products and a commitment to superior customer service. The expansion of our West Coast presence is an exciting step in our continued growth as a national specialty VMS retailer.”
Mr. Truesdale added, “Super Supplements' key management team will remain in place and are excited about the growth opportunities we collectively envision. I am delighted to welcome the Super Supplements team into the Vitamin Shoppe family.”
Jim Sweeney, CEO of Super Supplements, stated, “As part of the Vitamin Shoppe family, Super Supplements will be able to leverage the Vitamin Shoppe's scale, operating infrastructure and product development expertise.” He added, “We are all very proud of what we have built and accomplished since 1994 and we are very excited that the next chapter for Super Supplements will be as a part of the Vitamin Shoppe family.”