Kainos Capital To Acquire Tivity Health’s Nutrition Business For $575 Mln – Quick Facts

Kainos Capital, a private equity firm focused exclusively on the food and consumer industry, said Monday it has agreed to acquire Nutrisystem, a direct-to-consumer nutrition and weight management brand, from Tivity Health, Inc. (TVTY) for $575 million.

The transaction is expected to be completed in the fourth quarter. Shares of Tivity Health are gaining more than 7 percent in pre-market activity following the announcement.

Kainos noted that Nutrisystem provides a balanced and clinically proven approach to weight loss with portion-controlled foods specifically designed to meet consumer needs and delivered directly to customers’ doors.

Tivity Health is a provider of fitness, social engagement, and nutrition solutions.

Separately, Tivity Health said that Kainos Capital will acquire its Nutrition Business, which includes Nutrisystem and South Beach Diet, for $575 million in cash.

Tivity Health noted that divesting the Nutrition Business through this transaction will best enable it to focus on its core healthcare business, to drive long-term, sustainable growth and increase shareholder value.

Tivity Health said it will use the divestiture proceeds to pay down debt and provide significant additional financial flexibility to support the growth of its go-forward, focused healthcare business.

Nutrisystem’s portfolio of entrées, snacks, and shakes is complemented by live counseling options, including trained weight loss coaches, registered dietitians and certified diabetes educators that are available seven days a week.

Nutrisystem also provides a free digital app, NuMi, that helps customers track performance and achieve their goals.

Kainos has invested in a several businesses within the health and wellness space including SlimFast, which it acquired from Unilever in 2014 and sold to Glanbia plc in 2018.

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