Kainos Capital, a private equity firm focused exclusively on the food and consumer industry, is to acquire Nutrisystem, a Ft. Washington, PA-based direct-to-consumer nutrition and weight management brand, from Tivity Health (Nasdaq: TVTY), for $575m.
The Private Capital Group of MSD Partners, L.P. is partnering with Kainos Capital in this transaction in the form of a preferred and common equity investment.
Completion of the transaction is expected in the fourth quarter, subject to customary closing conditions.
Rabobank is providing debt financing for the transaction and is acting as financial advisor to Kainos (through Rabo Securities USA, Inc.). Winston & Strawn is serving as legal counsel to Kainos.Nutrisystem provides a balanced and clinically proven approach to weight loss with portion-controlled foods specifically designed to meet consumer needs that are conveniently delivered directly to customers’ doors. The company’s portfolio of entrées, snacks, and shakes is complemented by various 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.