Kainos to pick up Nutrisystem

Private equity firm Kainos Capital has agreed to acquire US-based direct-to-consumer nutrition and weight management brand Nutrisystem from Tivity Health for USD 575.00 million.

Completion is slated for the fourth quarter of 2020, subject to customary closing conditions.

The Private Capital Group of MSD Partners is partnering with Kainos for the transaction.

Launched in 1972, Nutrisystem provides weight loss products and services to customers across North America.

Its offerings include individual diet and exercise plans, snacks and shakes and online counselling, as well as its digital application, NuMi, which tracks customers’ performance and helps them to achieve their weight goals.

Andrew Rosen, managing partner of Kainos, said: “We are excited to re-establish 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.

“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.”

John Civantos, co-head of the Private Capital Group, noted: “This investment is a perfect example of both MSD’s application of deep domain expertise in technology-driven, direct-to-consumer businesses, and our unique ability to construct creative, flexible capital solutions at scale.”

Kainos will also add another company to its food and beverage portfolio, which includes the likes of Kettle Cuisine, Olde Thompson and JJ’s Bakery.

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Headquartered in Texas, the private equity firm has invested over USD 2.00 billion of equity in more than 70 transactions with a total value of more than USD 10.00 billion.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,164 deals targeting food manufacturers announced worldwide in 2020 to date.

In the most valuable of these, Groupe Lactalis agreed to buy Kraft Heinz’s natural, grated, cultured and speciality cheese businesses for USD 3.20 billion.

© Zephus Ltd

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