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Kingswood Capital Management and Performance Investment Partners Complete Acquisition of The Vitamin Shoppe

1. Kingswood and PIP acquired The Vitamin Shoppe from FRG. 2. Sharon Leite returns as CEO to drive growth. 3. Focus on enhancing digital marketing and e-commerce capabilities. 4. New board members bring extensive retail experience. 5. The Vitamin Shoppe aims for expansion in wellness market.

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$29.8805/20 09:21 AM EDTEvent Start
$29.8805/21 03:47 PM EDTLatest Updated
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FAQ

Why Bearish?

The sale indicates FRG could be divesting from growth segments, which may decrease investor confidence. Historical precedents show stock prices often drop after divestitures due to perceived weakness.

How important is it?

The article discusses a major divestiture affecting FRG's core business, influencing market perception and financial standing.

Why Short Term?

The immediate market reaction is likely tied to the sale's announcement and sentiment around company direction. Similar divestiture announcements have historically led to quicker market adjustments.

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VSIKSWDPIP
LOS ANGELES--(BUSINESS WIRE)--Kingswood Capital Management, LP (together with its affiliates, “Kingswood”) and Performance Investment Partners, LLC (“PIP”) are pleased to announce they have completed their acquisition of The Vitamin Shoppe (“The Vitamin Shoppe” or the “Company”), a leading pure-play omnichannel retailer of vitamins and nutritional supplements, from Franchise Group, Inc. (“FRG”). As part of the transaction, Sharon Leite, who previously served as Chief Executive Officer (“CEO”) of The Vitamin Shoppe from 2018 to 2023, has returned to lead the Company as its CEO. The rest of the executive leadership team remains in place. "After an incredibly rewarding and successful four and a half years in the business, I am thrilled to return to The Vitamin Shoppe," said Sharon. "With the invaluable support of our partners at Kingswood and PIP—leaders in building brands and driving growth in omnichannel retail—we are primed for an exciting new era of expansion. I look forward to collaborating with the board, management team, vendor partners, and our dedicated Health Enthusiasts as we build a world-class health and wellness platform that delivers an unparalleled experience to our customers." Headquartered in Secaucus, New Jersey, The Vitamin Shoppe is a global, omnichannel retail and wellness lifestyle company with the mission of providing customers with the most trusted products, guidance, and services to support them on their journeys of lifelong wellness. The Company offers a comprehensive assortment of nutritional solutions, including vitamins, minerals, sports nutrition, specialty supplements, herbs, homeopathic remedies, and green living products. In addition to carrying products from approximately 700 national brand partners, The Vitamin Shoppe offers products from its owned brands, including: The Vitamin Shoppe®, Vthrive The Vitamin Shoppe®, BodyTech®, BodyTech® Elite, plnt®, ProBioCare®, and True Athlete®. The Company conducts business through over 635 company-operated retail stores under The Vitamin Shoppe and Super Supplements™ banners and via its website. Upon closing, Alex Smith and Beth Kaplan joined Sharon and representatives from Kingswood and PIP on the Company’s board. Alex Smith is a Kingswood operating partner and the current Executive Chairman of Kingswood portfolio company, World Market. Previously, Alex served as Executive Chairman and then Chairman of The Vitamin Shoppe, served as CEO of Pier 1 Imports, and held numerous senior management positions at The TJX Companies. Beth Kaplan is an experienced operator, advisor, and investor in the consumer sector. Most recently, Beth was the President and Chief Operating Officer of Rent The Runway. Previously, she served as President, Chief Merchandising and Marketing Officer, and Director of General Nutrition Centers (“GNC”). Before joining GNC, Beth held numerous leadership positions within Bath & Body Works, Rite Aid Drugstores, and Procter & Gamble. Kingswood Partner Michael Niegsch and PIP Partner Mark Genender commented, "We are thrilled to be able to partner with Sharon, Alex, Beth, and the entire team at The Vitamin Shoppe. We look forward to investing in a variety of brand-building strategies, including further supporting the Health Enthusiasts in running great stores, enhancing the company’s digital marketing and e-commerce capabilities, innovating the private brand portfolio, and working with existing and emerging third-party brands to be the best distribution partner in the market.” Jefferies LLC served as exclusive financial advisor to Kingswood and PIP and McDermott Will & Emery LLP and Sidley Austin LLP served as legal counsel. Ducera Partners LLC served as financial advisor and Kirkland & Ellis LLP served as legal counsel to FRG. About The Vitamin Shoppe® Lifelong Wellness Starts Here™. The Vitamin Shoppe® is a global, omnichannel retailer and wellness lifestyle Company with the mission of providing customers with the most trusted products, guidance, and services to support them on their journeys of lifelong wellness. Based in Secaucus, New Jersey, the Company offers a comprehensive assortment of nutritional solutions, including vitamins, minerals, sports nutrition, specialty supplements, herbs, homeopathic remedies, and green living products. In addition to carrying products from approximately 700 national brands, The Vitamin Shoppe offers products from its proprietary brands within its owned and wholesale channels, including: The Vitamin Shoppe®, Vthrive The Vitamin Shoppe®, BodyTech®, BodyTech® Elite, plnt®, ProBioCare®, and True Athlete®. In the U.S., the Company conducts business through over 635 company-operated retail stores under The Vitamin Shoppe and Super Supplements™ banners and via its website, www.vitaminshoppe.com. Globally, The Vitamin Shoppe serves customers in select Asia, South America, and Central America markets through local omnichannel partners. About Kingswood Capital Management, LP Kingswood Capital Management, LP partners with leading companies in the middle market which stand to benefit from its capital and extensive operating resources. Kingswood embraces complexity and believes it is well-positioned to support businesses at inflection points in their development to enhance value. Based in Los Angeles, Kingswood is a cohesive, entrepreneurial team with a long history of shared success developing “win-win” partnerships with its portfolio companies and management teams. For more information, please visit the Kingswood website at www.kingswood-capital.com. About Performance Investment Partners Performance Investment Partners (“PIP”) was formed in 2024 by Mark Genender, Ran Reske, and Todd Eberstein to invest in consumer-facing businesses where the partners’ combined investment and operating experience can add value. Mr. Genender has a long history of private equity investing in both middle market and growth companies and working closely with management teams to improve performance and drive top- and bottom-line growth. He currently serves as Chairman of Serta Simmons Bedding. Mr. Reske is the former Co-Founder and Co-CEO of Resident Home, a digitally native bedding marketer and supplier of leading brands including Nectar and Dreamcloud. Resident Home was acquired in March 2024 by Ashley Furniture. Mr. Eberstein is a Managing Partner of Mesa Investments and a former portfolio manager at a leading hedge fund. PIP is based in Los Angeles, California.

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