ZURICH: Switzerland's Nestle SA has acquired U.S. weight management and nutritional products company Jenny Craig for around $600 million, the company announced Monday.
Nestle, the world's largest food company, bought the California-based Jenny Craig from a private equity group comprising ACI Capital and MidOcean Partners. The Swiss company said the deal will not dilute group earnings.
Jenny Craig is into an array of food products and services such as weight management programs. Its operations cover U.S., Canada, Australia and New Zealand. The company, founded by weight-loss expert Jenny Craig in 1983, had annual sales of over $400 million in 2005.
Nestle is into expansion mode, having recently bought Australia's Uncle Tobys snacks, breakfast and soups business. The company also intends to focus on higher-margin health and nutritional products.
Nestle's chief executive Peter Brabeck said with this strategic acquisition, the company takes another important step in its transformation process into a nutrition, health and wellness. It already owns the Lean Cuisine food brand and makes PowerBars in this segment.
Jenny Craig had been put on the block in January 2006 by the equity firms, which had acquired a majority stake in the company from its founders in 2002 for $115 million. It has some 3,000 employees and over 600 centers in four countries it operates. Apart from its prepared meals, it also offers comprehensive program that helps clients lose and maintain their weight by creating a healthy relationship with food, building an active lifestyle and developing a balanced approach to living.
