Shares of nutritional products and supplements retailer Vitamin Shoppe (VSI - Get Report) surged on Thursday after the company said it was being acquired by Liberty Tax in an all-cash deal valued at approximately $208 million.
Under terms of the deal, Vitamin Shoppe shareholders will receive $6.50 a share, representing a 43% premium to its closing share price of $4.54 on Wednesday. The transaction is expected to be completed in the fourth quarter, subject to shareholder approval.
Shares of Vitamin Shoppe jumped more than 40% to $6.37 in premarket trading on the New York Stock Exchange.
The deal "provides an immediate premium to our current shareholders and aligns The Vitamin Shoppe with a partner that shares our strategic vision to unlock the further potential of The Vitamin Shoppe as a leader in health and wellness," CEO Sharon Leite said in a statement.
Liberty Tax is the parent company of Liberty Tax Service and Buddy's Home Furnishings. Its pink-sheet shares trade over the counter under the symbol "TAXA."
Separately, Vitamin Shoppe reported a second-quarter net loss of $3.57 million, or 15 cents a share, vs. net income of $7.18 million, or 22 cents a share, in the comparable year-earlier quarter.
On an adjusted basis, the company reported per-share earnings from continuing operations of 20 cents compared with 31 cents a year ago. Analysts polled by FactSet had been expecting adjusted earnings of 12 cents a share. Revenue came in at $270.9 million, below analysts' forecasts of $278.6 million.