Nestlé to sell Jenny Craig assets to North Castle Partners

Nestlé has entered into an agreement to sell its Jenny Craig diet business unit to US-based private equity firm North Castle Partners.

The terms of the transaction, which is subject to customary closing conditions, have not been disclosed.

Established in 1983, Jenny Craig has been operating as part of Nestlé Nutrition since 2006 when the Swiss food giant acquired the brand in a $600m deal.

The brand provides consumers with a wide range of weight management programmes that are tailored to meet their requirements.

The sale includes Jenny Craig operations in North America and Oceania, but excludes those in France.

It is likely to fetch Nestlé less than what it spent on the brand acquisition seven years ago.

As part of the transaction, North Castle Partners will gain ownership of the businesses and offer employment to Jenny Craig staff in North America and Oceania.

Headquartered in Connecticut, North Castle Partners is primarily engaged in making investments in businesses that promote health, wellness and active living.

Nestlé CEO Paul Bulcke was recently quoted by Reuters as saying that there would be some divestitures, noting that some brands had been "sailing under the radar screen for too long without being part of the party", though he did not identify specific brands.

"The shortlists are there and now the action has to come. The timelines have to be wise, but action will come," Bulcke added.

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Image: The sale does not include Jenny Craig operations in France. Photo courtesy of Nestlé.