Kingswood Capital Management and Performance Investment Partners (PIP) have agreed to acquire The Vitamin Shoppe from Franchise Group in a deal valued at approximately $193.5m.

The acquisition comes as The Vitamin Shoppe emerges from Chapter 11 bankruptcy proceedings initiated by its parent company in November 2024.

The transaction is expected to close in Q2 2025 and includes a revitalisation strategy aimed at repositioning the health and wellness retailer for growth. Kingswood and PIP plan to invest in store modernisation, digital platform upgrades, new third-party partnerships, and the expansion of proprietary brands such as BodyTech and True Athlete.

Founded in Secaucus, New Jersey, The Vitamin Shoppe operates around 650 stores nationwide and is a leading omnichannel player in the vitamins and nutritional supplements space. Its product offering spans over 700 third-party brands in addition to its owned labels.

The deal highlights a continued wave of private equity interest in consumer-facing retail platforms with turnaround potential. Other recent examples include Blackstone’s investment in Jersey Mike’s Subs, Roark Capital’s acquisition of Subway, and Sycamore Partners’ $10bn bid for Walgreens Boots Alliance.

Franchise Group’s decision to sell follows its broader restructuring efforts, which also include the closure of American Freight. The company, headquartered in Delaware, Ohio, continues to own Pet Supplies Plus and Buddy’s Home Furnishings.

Jefferies is acting as exclusive financial adviser to Kingswood and PIP. Legal counsel is being provided by McDermott Will & Emery and Sidley Austin. Franchise Group is being advised by Ducera Partners and legal counsel from Kirkland & Ellis.

Source: WWD