(Reuters) -Vitamin Shoppe proprietor Franchise Group (NASDAQ:) Inc can be taken personal by a bunch led by CEO Brian Kahn in a deal valued at about $2.6 billion, the corporate mentioned on Wednesday.

Shares of Franchise, which additionally owns retailer Buddy’s Residence Furnishings and low cost furnishings retailer American Freight, climbed about 3% premarket.

The consortium, which additionally consists of B. Riley Monetary Inc and personal fairness agency Irradiant Companions, would pay $30 per share, barely above inventory’s closing value of $29.92 as of Jan. 9, a day earlier than studies of a possible administration buyout first surfaced.

The provide value represents an fairness worth of about $1.05 billion. The corporate in March disclosed it had obtained an unsolicited proposal for a buyout, however didn’t disclose any particulars in regards to the purchaser.

The deal is predicted to shut within the second half of 2023, after which Franchise’s administration crew, together with Kahn, would proceed to guide the corporate and run its present portfolio of retail manufacturers.

Individually, Franchise reported a close to 3% drop in first-quarter revenues to $1.10 billion, hit by weakening demand for discretionary objects and residential items as inflation-hit shoppers reduce on non-essential spending.

The corporate, which operates greater than 3,000 retail places primarily positioned in the USA, additionally posted a loss for the quarter ended April 1, in comparison with a revenue final yr, and withdrew its forecast for 2023.

Franchise final yr was in unique talks with Kohl’s Corp (NYSE:) to accumulate the division retailer chain, however Kohl’s in July known as off the sale citing sinking markets and troublesome financing situations.