Nestle sells Jenny Craig in US, Oceania

Nestle sells Jenny Craig in US, Oceania

Swiss food giant Nestle has struck a deal to sell its Jenny Craig weight management unit in North America and Oceania to North Castle Partners.

In an announcement this morning (7 November), Nestle said Jenny Craig's new private equity owners would provide employment for Jenny Craig workers in these regions. The Jenny Craig's French operations were not part of the sale and the company did not indicate what its plans were for this part of the business.

The financial terms of the transaction were not disclosed.

The announcement confirms long-running speculation that Nestle planned to dispose of the business. The company had previously indicated it is looking to sell off under-performing assets in order to create what the world's largest food manufacturer called a "more flexible, more agile, crisp" organisation.

Nestle is also said to be seeking a buyer for another Nestle Nutrition business - PowerBar. Nestle sells energy bars, sports drink mixes and supplements business, under the PowerBar brand.

When Nestle announced its first-half results in August, the company said margins from its Nestle Nutrition business had fallen by 60 basis points, in part due to the performance of its weight management operations. The company provided a nine-month sales update in October and is scheduled to report its full-year results in February.

Show the press release

Nestlé sells Jenny Craig in North America and Oceania
Nestlé divests Jenny Craig businesses in North America and Oceania to North Castle Partners North Castle Partners: a leading private equity firm that invests in high-growth, middle market businesses Financial details of the transaction not disclosed
Vevey, 7th November 2013 - Nestlé today announced it has sold its weight management business Jenny Craig in North America and Oceania to a US-based private equity group North Castle Partners. The Jenny Craig business in France is not part of the transaction.
The new owners will take over the businesses and offer employment to Jenny Craig staff in North America and Oceania.
North Castle Partners is a Connecticut-based leading US private equity firm that invests in businesses that promote health, wellness and active living. Jenny Craig was founded in 1983 and offers consumers weight management programmes tailored to their specific needs. It has been part of Nestlé Nutrition since 2006. Nestlé Nutrition is part of Nestlé, the world's leading Nutrition, Health and Wellness company. Nestlé employs more than 330,000 people and its products are sold in almost every country in the world.
The transaction is subject to customary closing conditions and the financial details will not be disclosed.

Original source: Nestle