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iHerb Strengthens Growing Domestic Business with Acquisition of Vitacost from Kroger

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KRiHerb Holdings, LLC
High Materiality8/10

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Strategic Transaction Accelerates iHerb's U.S. Business and Solidifies Commitment to the Vitamins, M...

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AI Summary

iHerb acquires Vitacost from Kroger, enhancing market presence. Acquisition increases access to a loyal U.S. customer base. iHerb expects significant operational synergies and expanded offerings. The deal strengthens iHerb’s product assortment and brand relationships. Financial terms of the acquisition remain undisclosed.

Sentiment Rationale

The acquisition suggests positive strategic movements, similar to past successful integrations that have strengthened market positions, benefiting stock valuations.

Trading Thesis

The effects of customer integration and potential operational synergies will be felt quickly, potentially impacting short-term revenues positively.

Market-Moving

  • iHerb's acquisition of Vitacost indicates major growth in health e-commerce.
  • Kroger may see improved focus on core operations post-divestment.
  • Expect potential share price shift for iHerb amidst integration challenges.
  • Vitacost’s loyal clientele could enhance iHerb’s revenue stream significantly.
  • Growth in the health and wellness sector may benefit Kroger indirectly.

Key Facts

  • iHerb acquires Vitacost from Kroger, enhancing market presence.
  • Acquisition increases access to a loyal U.S. customer base.
  • iHerb expects significant operational synergies and expanded offerings.
  • The deal strengthens iHerb’s product assortment and brand relationships.
  • Financial terms of the acquisition remain undisclosed.

Companies Mentioned

  • KR (KR)
  • iHerb Holdings, LLC (iHerb Holdings, LLC)

M&A

This event is significant as it affects competitive dynamics in the health sector, implicating potential revenue and market share changes for Kroger.

iHerb Strengthens Domestic Business with Acquisition of Vitacost from Kroger

IRVINE, Calif., Jan. 09, 2026 (GLOBE NEWSWIRE) -- iHerb Holdings, LLC, a leading online retailer in health and wellness, has announced the successful acquisition of Vitacost.com, Inc. from The Kroger Co. (NYSE: KR). This strategic move is set to enhance iHerb's market presence in the United States, establishing the combined entity as a premier destination for health, nutrition, and wellness products.

The Legacy of Vitacost in Wellness

Vitacost is a renowned e-commerce brand offering over 40,000 health-focused products, including vitamins, minerals, supplements (VMS), and eco-friendly consumer goods. With a legacy of over 30 years, Vitacost has been a trusted source for health-conscious consumers, known for its product information and premium items.

Strategic Importance of the Acquisition

This acquisition is poised to significantly accelerate iHerb's scale in the U.S. market. By integrating the Vitacost brand, intellectual property, and existing inventory, iHerb aims to enhance its offerings and strengthen its position in the competitive landscape of health and wellness e-commerce.

Key Benefits of the Transaction

  • Expanded Reach: iHerb will immediately access Vitacost's loyal U.S. customer base.
  • Enhanced Offerings: Vitacost customers will gain access to iHerb's efficient global supply chain and extensive international brand portfolio.
  • Category Leadership: This transaction solidifies iHerb's leadership in the growing VMS and natural products categories, including beauty and personal care.

CEO Insights on the Acquisition

Emun Zabihi, Chief Executive Officer of iHerb, shared his enthusiasm regarding the acquisition: “This is an exciting and highly complementary acquisition for iHerb. Vitacost's loyal customer base and product assortment align closely with our mission to make health and wellness accessible to all. This acquisition strengthens our scale in the U.S. and enhances our relationships with key brands.”

Transaction Details and Advisory

While the financial terms of the transaction remain undisclosed, it was facilitated through the expertise of financial advisors. Ducera Partners, LLC acted as the exclusive financial advisor to iHerb, while Latham & Watkins LLP provided legal assistance. On the other side, RBC Capital Markets, LLC served as the financial advisor for Kroger, supported by Weil, Gotshal & Manges LLP as legal counsel.

Forward-Looking Statements

This announcement includes forward-looking statements about the acquisition's potential benefits, expected synergies, and management plans. These statements involve risks and uncertainties that could lead actual results to differ materially from expected outcomes. Stakeholders should not place undue reliance on these forward-looking statements.

About iHerb Holdings, LLC

iHerb is among the world's top online retailers for health and wellness, offering a vast selection of vitamins, minerals, and supplements from nearly 2,000 reputable brands. With a workforce of 3,000 team members, iHerb serves 15 million customers in 180 countries. Founded in 1996, the company is headquartered in Irvine, California, and is dedicated to making health and wellness products accessible to everyone.

About Vitacost.com

Vitacost.com, Inc. is recognized for its exceptional online retailing of health and wellness products. Offering nearly 40,000 products, including dietary supplements and organic body care, Vitacost.com aims to inspire healthier living through informative content. It operates as a subsidiary of The Kroger Co. (NYSE: KR).

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