“This is an exciting and highly complementary acquisition for iHerb,” said Emun Zabihi, chief executive officer of iHerb, in a press release. “Vitacost has a loyal customer base and deep assortment of products that aligns closely with our mission to make health and wellness accessible to all.
“This acquisition immediately expands our scale in the U.S., strengthens our relationships with key brands and adds a largely incremental customer base to iHerb’s platform. It also demonstrates our ability to grow through strategic acquisitions that complement our nearly 30-year history of organic growth.”
The deal gives iHerb immediate access to Vitacost’s loyal and largely incremental U.S. customer base and establishes the combined entity as a top online destination for health, nutrition and wellness products.
The financial terms of the transaction were not disclosed.
Revenues
iHerb reported record net sales in excess of $2.4 billion in 2024, a YoY growth of 14.5%. The company fulfilled 37 million orders to 180 countries, with a global supply chain network anchored by nine climate-controlled logistics centers located in the U.S., Asia and the Middle East.
Vitacost offers over 40,000 health-conscious products, including vitamins, minerals and supplements (VMS) and natural, organic and eco-friendly consumer goods. Kroger completed the purchase of Vitacost.com in August 2014 for $280 million. Estimated post-acquisition revenues for the online retailer range between $280 million to $550 million, depending on the source.
Transaction details and advisors
Ducera Partners, LLC served as exclusive financial advisor to iHerb, and Latham & Watkins LLP provided legal counsel. RBC Capital Markets, LLC served as financial advisor to Kroger, and Weil, Gotshal & Manges LLP provided legal counsel.
