DALLAS — Private equity firm Kainos Capital has agreed to acquire Nutrisystem, Inc. from Tivity Health, Inc. for $575 million. Tivity Health acquired Nutrisystem in December 2018 for $1.3 billion.
Nutrisystem manages weight management brands under its namesake and the South Beach Diet, offering personalized portion-controlled foods delivered directly to consumers’ doors. The company’s portfolio includes entrees, snacks and shakes.
“We are excited to reestablish Nutrisystem as an independent company that is well positioned to help the significant portion of the US population that wants to be healthier, yet struggles with weight management,” said Andrew Rosen, managing partner of Kainos. “For the approximately 40% of adults who are considered overweight — and increasingly at risk for a range of serious conditions — Nutrisystem can play an important role in helping improve quality of life. Nutrisystem is a valuable partner to its customers, particularly during the COVID pandemic when it is more challenging for many people to access affordable, healthy meals.”
Kainos Capital previously invested in SlimFast, which it acquired from Unilever PLC in 2014 and sold to Glanbia PLC in 2018. During Kainos' ownership, SlimFast became the fastest-growing brand in the weight management category at retail for three years in a row, according to the company.
“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,” said Bob Sperry, a partner of Kainos. “Nutrisystem offers its customers a complete, cost effective weight loss program that is proven, great tasting and incredibly convenient, with no initiation or recurring membership fees. Customers don't need to leave their homes to travel to a weight loss center for scheduled appointments, and they don't need to weigh their food or count calories. Everything customers need to accomplish and sustain their weight management goals is delivered right to their doors. Nutrisystem provides the most effective and convenient weight loss platform to help customers lead healthier, happier lives.”
Nutrisystem joins Kainos Capital’s portfolio of food company investments, which also includes Whisps, Kettle Cuisine, Florida Food Products, Earthbound Farm Organic, Pinnacle Foods Group LLC, Premier Foods and Ghirardelli Chocolate.