Nestle to sell Jenny Craig weight management businesses to North Castle Partners
07 November 2013
Swiss foods giant Nestle SA, today said that it would sell its Jenny Craig weight management businesses in North America and Oceania to private equity firm North Castle Partners for an undisclosed sum.
Founded in 1983 in Melbourne, Australia, Jenny Craig is one of the world's largest weight management programmes, with Centres in the US, Canada, Australia, New Zealand, Puerto Rico, and France.
The Jenny Craig business in France is not part of the transaction.
Jenny Craig, a part of Nestlé Nutrition, offers consumers weight management programmes tailored to their specific needs.
Nestle had acquired Jenny Craig in 2006 from private equity firms ACI Capital and MidOcean Partners for $600 million.
Connecticut-based North Castle Partners invests in businesses that promote health, wellness and active living.
Nestle said that North Castle Partners will take over the businesses and offer employment to Jenny Craig staff in North America and Oceania.
Vevey, Switzerland-based Nestle had in August said that it would take a good look at its non-performing brands after having posted its weakest quarterly results in four years.
Analysts had speculated that Nestle may divest brands like regional mineral water brands Arrowhead and Deer Park, Lean Cusine frozen meals, Jenny Craig diet centres and Powerbar.
Other companies have recently reassessed their portfolio of non-performing assets and have been divesting some brands in developed regions.
British pharmaceutical giant GlaxoSmithKline this year agreed to sell its Lucozade and Ribena nutrition drinks to Japan's Suntory Beverage & Food Ltd for $2.11 billion, while Anglo-Dutch consumer goods giant Unilever sold its Wish-Bone salad dressings business to US-based Pinnacle Foods for $580 million and Campbell Soup sold some of its European soups, sauces and simple meals brands to private equity firm CVC Capital Partner for an undisclosed sum.