CINCINNATI — The Kroger Co. has finalized the sale of its health and wellness e-commerce subsidiary, Vitacost.com, Inc., to iHerb, completing a transaction first announced earlier this week. The deal closed on Jan. 8; financial terms were not disclosed.
Kroger stated that the divestiture is part of a broader review of non-core assets as the company progresses with priorities, including streamlining its organization, enhancing the customer experience, and focusing resources on its main grocery business. The sale will not impact Kroger’s previously issued financial guidance for fiscal 2025, the company added.
“As we shared earlier this fiscal year, we are reviewing all non-core assets to determine their ongoing contribution and role within the company,” said Ron Sargent, Kroger’s chairman and CEO. He added that iHerb is well-positioned to support Vitacost’s growth beyond Kroger and that both companies are working to ensure a smooth transition for customers and associates.
Vitacost, a well-known online retailer of vitamins, supplements, and health products, will now operate under iHerb’s global platform. iHerb serves customers in 180 countries and has developed a large international logistics network to support cross-border e-commerce in health and wellness categories.
“The acquisition of the Vitacost brand represents a strategic investment in a name long associated with quality, value, and trust among American health and wellness consumers,” said Emun Zabihi, chief executive officer of iHerb. He said Vitacost’s brand equity and customer base complement iHerb’s existing capabilities and will help strengthen its position in the online health and wellness market.
For drug retailers and mass merchants, the transaction highlights ongoing consolidation and specialization in digital health and wellness retailing, as traditional grocers reevaluate their peripheral e-commerce assets while category specialists expand globally.
RBC Capital Markets and Weil, Gotshal & Manges served as the financial and legal advisors to Kroger, respectively. Ducera Partners and Latham & Watkins advised iHerb on the transaction.
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