Swiss food giant Nestlé has signed a deal with US-based private equity firm North Castle Partners to sell its Jenny Craig businesses in North America and Oceania, for an undisclosed amount.
Established in 1983, Jenny Craig offers consumers weight management programs tailored to their specific needs. Since 2006, the brand has been a part of Nestlé Nutrition, which in turn is a part of Nestlé.
The transaction is subject to customary closing conditions, and it does not include the Jenny Craig business in France.
As part of the deal, North Castle Partners will take over the businesses and offer employment to Jenny Craig staff in North America and Oceania.
The sale is reportedly expected to fetch less than $600m that Nestlé paid for the brand in 2006.
In October, the Swiss firm said that it was looking to review its portfolio of 8,000 brands in a move to sell certain underperforming businesses.
Earlier, Nestlé CEO Paul Bulcke was quoted by Reuters as saying that there would be a sale of brands that had been sailing under the radar screen for too long without being part of the party, without specifying the brand names.
"The shortlists are there and now the action has to come. The timelines have to be wise, but action will come," Bulcke added.
Nestlé is a leading nutrition, health and wellness company, with more than 330,000 staff.
North Castle Partners is a Connecticut-based firm investing in businesses that promote health, wellness and active living.
