Vitacost.com Inc., an Internet supplement retailer, should put itself up for sale, according to activist shareholder Consac LLC.
Consac, led by Ryan Drexler, has amassed about 7.7 percent of Boca Raton, Florida-based Vitacost’s shares and is urging Chief Executive Jeffrey J. Horowitz and the board to seek a buyer in a letter obtained by Bloomberg News.
“The company’s market share and distribution network will be of interest to several significant industry players and other retailers, who will be able to better leverage the company’s strengths within a larger, better capitalized entity,” Drexler said in the letter.
Representatives for Vitacost didn’t immediately respond to messages seeking comment.
Activist funds generally acquire equity stakes in companies and try to force corporate management and boards to make changes that boost share prices and investor returns. Drexler said his family founded Country Life Vitamins in the 1970s, and sold it in 2005 to Kikkoman Corp., a Japanese food company.
Osmium Partners LLP earlier this month nominated two directors for election to Vitacost’s board, alongside ongoing talks to appoint an additional independent director, regulatory filings show.
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