iHerb Strengthens Growing Domestic Business with Acquisition of Vitacost from Kroger

Core Insights - iHerb Holdings, LLC has completed the acquisition of Vitacost.com, Inc. from The Kroger Co., which is expected to enhance iHerb's market presence in the U.S. and establish it as a leading online destination for health and wellness products [1] Company Overview - iHerb is a major online retailer specializing in health and wellness products, offering a wide selection of vitamins, minerals, supplements, and other related items from nearly 2,000 reputable brands [7] - Vitacost is a respected e-commerce brand with over 40,000 health-conscious products, including vitamins, minerals, and eco-friendly consumer goods, and has been a trusted source for health-focused consumers for over 30 years [2][8] Strategic Rationale - The acquisition of Vitacost is expected to accelerate iHerb's scale in the U.S. market by integrating Vitacost's brand, intellectual property, and inventory, which includes a diverse range of National and Owned Brands [3] - The combination of iHerb and Vitacost is anticipated to create significant benefits, including an expanded customer base and strengthened relationships with key brands, aligning with iHerb's mission to make health and wellness accessible [3] Transaction Details - The financial terms of the acquisition were not disclosed, with Ducera Partners, LLC acting as the exclusive financial advisor to iHerb and RBC Capital Markets, LLC advising Kroger [4] Expanded Reach and Offerings - iHerb gains immediate access to Vitacost's loyal U.S. customer base, enhancing its market reach [6] - Vitacost customers will benefit from iHerb's global supply chain efficiency and extensive international brand portfolio, improving their shopping experience [6] Category Leadership - The acquisition strengthens iHerb's brand relationships and leadership in high-growth categories such as vitamins, minerals, and natural products, including beauty and personal care [6]