Kainos Capital Completes Acquisition Of Nutrisystem For $575 Million

Rhea-AI Summary

Kainos Capital has successfully acquired Nutrisystem from Tivity Health (Nasdaq: TVTY) for $575 million. This acquisition is part of Kainos's strategy to expand its portfolio in the food and consumer sectors, particularly in health and wellness, during a time when such products are in high demand due to the pandemic. Nutrisystem, with over 45 years of experience, will operate independently, focusing on providing weight management products and services supported by clinical research.

Positive

• Acquisition of Nutrisystem enhances Kainos's portfolio in the food and consumer sector.
• Nutrisystem's established brand and history of consumer trust may lead to increased market share.
• Kainos aims to leverage Nutrisystem’s platform to meet growing demand for health and wellness products.

Negative

• The acquisition price of $575 million may impose financial strain during integration.
• Challenges may arise in aligning Nutrisystem's operations with Kainos's existing portfolio.

DALLAS, Dec. 9, 2020 /PRNewswire/ -- Kainos Capital, a private equity firm specializing in acquiring and managing food and consumer businesses, has completed its previously announced acquisition of Nutrisystem, the preeminent direct-to-consumer nutrition and weight management brand, from Tivity Health (Nasdaq: TVTY) for $575 million. The Private Capital Group of MSD Partners, L.P. has partnered with Kainos Capital in this transaction in the form of a preferred and common equity investment. 

The transaction reestablishes Nutrisystem as an independent company that will build on its more than 45-year history of helping millions of consumers manage their health through a balanced and clinically proven approach to weight loss.

Andrew Rosen, Managing Partner of Kainos, said, "We are excited to add Nutrisystem to the Kainos portfolio of companies. The Nutrisystem platform provides accessible and convenient weight management products and tools that enable consumers across the nation to achieve their healthier lifestyle goals. This opportunity is particularly attractive during the pandemic when health and wellness is top of mind and it is more challenging for many people to access affordable, healthy meals." 

Bob Sperry, a Partner of Kainos, added, "The investment in Nutrisystem builds on the Kainos team's strong history in the health and wellness space, including SlimFast, which we established as one of the fastest-growing brands in the weight management category under our ownership. We look forward to implementing the Kainos Change Capital strategy together with the Nutrisystem management team."

About Nutrisystem
Nutrisystem is a leader in the weight management industry, having helped millions of people lose weight and live healthier lives over the course of more than 45 years. Nutrisystem offers safe, effective and scientifically backed weight loss plans, with distinguished clinical studies and plans that include comprehensive support and counseling options from trained weight loss coaches, registered dietitians and certified diabetes educators available seven days a week from an award-winning contact center. For more information, visit www.nutrisystem.com.

About Kainos Capital
Kainos Capital is a middle market private equity firm with an exclusive focus on the food and consumer products sectors. The Kainos team has extensive investment and operating experience in the industry, having invested over $2 billion of equity in more than 75 transactions with a total transaction value in excess of $11 billion.  The firm's strategy is to build a diversified portfolio of growing and strategically relevant food and consumer businesses that trade buyers would like to acquire.  For more information, visit Kainos Capital's website at www.kainoscapital.com.

About MSD Partners, L.P.
MSD Partners, L.P., an SEC-registered investment adviser located in New York, was formed in 2009 by the principals of MSD Capital, L.P. to enable a select group of investors to invest in strategies that were developed by MSD Capital. MSD Capital was established in 1998 to exclusively manage the capital of Michael Dell and his family. MSD Partners utilizes a multi-disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities. MSD Private Capital Group leads MSD Partners' control equity and structured investments. For further information about MSD Partners and MSD Private Capital Group, please see www.msdpartners.com and www.msdprivatecapital.com.

Contact:
Mark Semer
Kekst CNC
(917) 439-3507

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SOURCE Kainos Capital

FAQ

What is the value of the acquisition of Nutrisystem by Kainos Capital?

The acquisition was valued at $575 million.

When was the acquisition of Nutrisystem by Kainos Capital completed?

The acquisition was completed on December 9, 2020.

What is the significance of Nutrisystem's acquisition for Tivity Health (TVTY)?

The acquisition allows Tivity Health to divest its non-core business, potentially focusing on its primary operations.

How might the acquisition impact Nutrisystem's future?

As an independent entity, Nutrisystem may focus on innovation and expanding its consumer offerings.

What is Kainos Capital's strategy following the acquisition of Nutrisystem?

Kainos intends to implement its Change Capital strategy to enhance Nutrisystem's market position.