Vitamin Shoppe Buys FDC Vitamins - Quick Facts

(RTTNews) - Vitamin Shoppe, Inc. (VSI), a multi-channel specialty retailer of nutritional products, said it has purchased FDC Vitamins, LLC, doing business as Nutri-Force Nutrition, from MBF Healthcare Partners, L.P. and other minority holders.

The purchase price is around $85 million which includes a $5 million earn out based on financial performance in 2014. The purchase price will be paid with available cash.

Nutri-Force Nutrition is a contract manufacturer of vitamins, minerals and supplements. It is a current manufacturer for the company as well as for other domestic and international customers and distributors.

The transaction was structured as a purchase of FDC Vitamins, LLC equity by a wholly-owned subsidiary of the Vitamin Shoppe.

The acquisition of Nutri-Force is expected to be neutral to slightly accretive to 2014 earnings per share, excluding transaction and integration costs.

Reflecting this transaction, and subject to finalization of purchase accounting, the Vitamin Shoppe has updated the following items from its previously issued 2014 outlook.

The company now expects depreciation and amortization of about $33 million and Earnings Before Interest and Tax or EBIT margin decline between 50 to 100 basis points year over year.