Liberty Tax plans up to $170 million of debt for Vitamin Shoppe buy

By Sara Rosenberg

New York, Aug. 8 – Liberty Tax Inc. plans to use up to about $170 million of debt financing and has received a $70 million equity commitment to fund its acquisition of Vitamin Shoppe Inc., according to filings with the Securities and Exchange Commission on Thursday.

Under the agreement, Vitamin Shoppe, a Secaucus, N.J.-based omni-channel, specialty retailer of nutritional products, is being bought for $6.50 per share, or about $208 million.

Closing is expected in the fourth quarter, subject to approval by the Vitamin Shoppe’s shareholders, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Virginia Beach, Va.-based Liberty Tax, which is planning on changing its name this year to Franchise Group Inc., is the indirect parent company of Liberty Tax Service, a preparer of income tax returns, and Buddy’s Home Furnishings, a leaser and seller of consumer electronics, residential furniture, appliances and household accessories.

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