Vitacost.com Announces Divestiture of Manufacturing Operation
Vitacost.com, Inc. (Nasdaq: VITC), announced that effective September 1, 2012, the Company has entered into an agreement to exit its manufacturing operations and lease its manufacturing facilities to a third party provider. Approximately forty percent of the Company's proprietary products are currently supplied by contract manufacturers, and this transaction outsources the remaining portion. The transaction is expected to be margin accretive over the next 12 months and neutral in the near term as the Company sells through its existing inventory. In addition, the Company expects the transaction to have approximately a $4.0 million to $5.0 million positive impact on cash in 2013 through the reduction in proprietary inventory levels.
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