Tivity Health sells Nutrisystem for $575 million, less than half what it paid to buy it last year

Private equity firm Kainos Capital announced a deal Monday to acquire weight-management and nutrition company Nutrisystem from Tivity Health for $575 million. The deal is expected to be completed in the fourth quarter. The purchase price is less than half what Tivity paid to buy Nutrisystem, in a deal announced less than two years ago, and closed just 19 months ago. Tivity’s stock shot up 7.7% in premarket trading. “We look forward to working with the Nutrisystem management team to achieve the full potential of this incredible brand similar to what we accomplished with SlimFast,” said Bob Sperry, a partner at Kainos. Tivity had acquired Nutrisystem in a deal valued at $1.3 billion, that was announced in December 2018 and that closed in March 2019. Tivity’s stock has dropped 24.2% year to date through Friday, while the S&P 500
has gained 7.8%.

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