Kroger unloads Vitacost to iHerb in push to streamline retail portfolio

The Kroger Company (NYSE:KR) completed the sale of its online health-and-wellness subsidiary, Vitacost.com, to iHerb on Friday, a move aimed at excising non-core digital assets as the grocery giant narrows its focus on its primary retail operations and high-return business lines.

While financial terms of the deal were not disclosed, Kroger confirmed the transaction closed on January 8.

The divestiture is part of a broader strategic pivot under Chairman and CEO Ron Sargent to simplify the company’s organizational structure.

Kroger acquired Vitacost in 2014 for approximately $280 million to bolster its e-commerce and "ship-to-home" capabilities, but the brand has increasingly lived on the periphery of Kroger's core supermarket and delivery ecosystem.

For iHerb, a global leader in health products serving over 180 countries, the acquisition provides a significant boost to its domestic U.S. presence.