China's Feihe International completes acquisition of Vitamin World
Vitamin World USA Corporation will immediately work together with Feihe to strengthen domestic operations and expand the 40-year-old brand into the Pacific Rim markets, according to a press release from the company.
Feihe International’s intent to acquire Vitamin World was first announced last month, with Reuters reporting that it planned to buy the US retailer out of bankruptcy for $28 million after no other bids were given.
Beijing-based Feihe acquired Vitamin World from private investment firm Centre Lane Partners, which bought the retailer from NBTY back in 2016.
“We are extremely fortunate to have such a strategic partner that not only truly understands our industry, but has the vision and ability to help Vitamin World rapidly gain significant global expansion,” said Michael Madden, CEO of Vitamin World.
Youbin Leng, Chairman of Feihe International, Inc. said “After several years of seeking to acquire a U.S. based vitamin and supplement brand, we couldn’t be more excited about the purchase and future of Vitamin World. The Chinese and Asian markets desire high-quality products focused on optimal health, and the Vitamin World brand exemplifies a commitment to excellence.”
“With Feihe’s current product lines and strong distribution network of over 50,000 locations, we are confident that we can rapidly achieve critical market share for the Vitamin World brand,” he added.
As of December 2017, Vitamin World operated 156 retail locations across the United States and its territories Guam, Puerto Rico, and the US Virgin Islands.
With Feihe International, Vitamin World will join other US supplement retailers who have entered the Chinese market recently. Vitamin Shoppe forayed into China back in October 2017, when it announced the launch of its digital business there.
Another retailer, GNC, which has been in business in China since 2011, sealed a deal with Chinese major online retailer and payment platform Alipay in August 2017 in an effort to drive its ecommerce sales in the region.