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.
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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.
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