Nestle has sold off its weight management business Jenny Craig in Australia, New Zealand, North America and the Pacific Islands.
The new owner of the business is North Castle Partners, a US private equity firm that invests in high-growth, middle market businesses that promote health, wellness and active living.
“The new owners will take over the businesses and offer employment to Jenny Craig staff in North America and Oceania,” Nestle said.
Last August Nestle also sold its Peters Ice Cream business to private equity firm Pacific Equity Partners as part of a move to focus its portfolio away from non-core chilled food brands.
However, according to Ildiko Szalai, Euromonitor International's senior analyst for food at Euromonitor International, while portfolio streamlining has been a key strategy in packaged food for many multinationals in recent years, Nestlé had not divested any significant assets so far.
"Strategically, the sale of a non-fitting, non-performing division makes perfect sense," he said.
Nestle also owns the Lean Cuisine ready meal brand, which in Australia is made under licence by Simplot. According to Euromonitor, however, the vast majority of Nestlé’s weight management sales occur in the US, where packaged food positioned at weight management saw sales of US$31.4 billion in 2012.
Nestle did not reveal the financial details of the latest transaction, but it said the Jenny Craig business in France was not part of the transaction.
Jenny Craig has been part of Nestlé Nutrition since 2006. It was founded in 1983 to offer consumers tailored weight management programs.
Nestle said the transaction was subject to customary closing conditions.
Nestle has sold its weight management business Jenny Craig.
