Franchise Group Inc., the parent company of Secaucus-based nutritional retailer The Vitamin Shoppe, says it received an unsolicited, non-binding takeover bid.
In a March 20 announcement, the Ohio-headquartered company, whose other ventures include Pet Supplies Plus and Sylvan Learning, said the proposal, from an unnamed party, seeks to acquire all outstanding common stock at a price of $30 per share.
Based on the stock’s March 17 closing price, the offer reportedly values the company at $1.05 billion and represents a near 32% premium.
According to Franchise Group, its board of directors “will carefully evaluate” the offer “to determine the course of action that it believes is in the best interest of the company and FRG stockholders” and noted that it “makes no assurance that the proposal will result in a transaction.”
Just a few of Franchise Group’s other brands include Wag N’ Wash, Buddy’s Home Furnishings, American Freight and Badcock Home Furniture & More. Altogether, its footprint includes 3,000 locations that are either company-run or operated under franchise or dealer agreements.
Franchise Group acquired The Vitamin Shoppe in December 2019, as part of an effort to diversify its business and operations.
The Vitamin Shoppe has been busy expanding across the country, with plans to open at at least 12 new franchise stores in 2023. After four decades of corporate ownership, the omnichannel retailer launched an omnichannel franchising program in May 2021 and has since signed 58 franchise territories to 15 partners.
Representatives from Franchise Group and The Vitamin Shoppe had no comment on the takeover proposal.
The announcement comes about three months after The Wall Street Journal reported that the company is considering going private through a potential management buyout led by Franchise Group Chief Executive Officer Brian Kahn.l