Kainos Capital to acquire Nutrisystem from Tivity Health for $575m

Private equity firm Kainos Capital has agreed to acquire nutrition and weight management brand Nutrisystem from Tivity Health for $575 million.

This purchase agreement will see Kainos Capital acquire Tivity Health’s full nutrition business, which includes the Nutrisystem and South Beach Diet brands.

Founded in 1972, Nutrisystem provides a range of calorie-controlled and low-calorie snacks, meals and shakes direct to consumers, as well as access to weight-loss coaches and nutritional advisors seven days a week. The brand also operates the NuMi app, which allows consumers to track performance and achieve nutritional goals. 

The transaction is expected to close in the fourth quarter of this year, subject to the receipt of regulatory approval and other customary closing conditions.

Kainos Capital has previously invested in brands present in the health and wellness sector, most notably through its purchase of UK-based SlimFast from Unilever. The private equity firm then sold SlimFast to Ireland-based Glanbia in 2018 for approximately $350 million.

Bob Sperry, a partner at Kainos Capital, said: “We look forward to working with the Nutrisystem management team to achieve the full potential of this incredible brand similar to what we accomplished with SlimFast.

“Nutrisystem offers its customers a complete, cost-effective weight loss programme that is proven, great-tasting, and incredibly convenient, with no initiation or recurring membership fees.

The acquisition comes just a year after Tivity Health acquired Nutrisystem in a deal valued at approximately $1.3 billion. Tivity Health will reportedly use the divestiture proceeds to pay down debt, in order to support the growth of its core healthcare business.

Anthony Sanfilippo, chairman of the board of directors of Tivity Health, said: “Following a comprehensive review of the company’s strategy and core capabilities, our board of directors and management team concluded that divesting the nutrition business through this transaction will best enable Tivity Health to focus its management team, resources and investment on its core healthcare business, to drive long-term, sustainable growth and increase shareholder value.”

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