North Castle Partners has entered into an agreement to acquire Jenny Craig, an iconic brand in the weight loss industry, from Nestle. North Castle will combine Jenny Craig with Curves International, an existing portfolio company that was acquired in August 2012.
“We are very excited to bring Jenny Craig into the North Castle family and to continue its 30-year tradition of providing consumers with dedicated one-on-one coaching and great tasting, clinically proven food to support their weight loss goals,” said Chip Baird, North Castle’s Founder and Managing Partner. “As a firm focused exclusively on consumer businesses that promote Health, Wellness, and Active Living, we were able to draw upon substantial experience from our current and prior investments in the weight loss, nutrition and fitness industries to evaluate the Jenny Craig opportunity and develop an investment plan that will revitalize the company.”
Jenny Craig is a weight loss, weight management, and nutrition company with more than 700 weight management centers in Australia, the United States, Canada, France, the United Kingdom, New Zealand, and Puerto Rico. Jenny Craig combines individual weight management counseling with a menu of frozen meals and other foods, which are distributed through its centers or shipped directly to clients. The company was founded in 1983 by Jenny Craig and her husband, Sidney Craig, in Melbourne, Australia and began operations in the United States in 1985. Today, the company is headquartered in Carlsbad, CA and has been a part of Nestlé Nutrition since 2006 (www.jennycraig.com).
Curves International is the largest women’s fitness club franchisor in the world with over 1.5 million members across 90 countries. Curves creates clubs specifically designed for women, offering members a convenient and effective workout in an environment that is safe and supportive. In 2012, Curves launched Curves Complete, a weight loss program developed in conjunction with the Cleveland Clinic. The company was founded in 1992 and is based in Woodway, TX (www.curves.com).
Upon completion of the transaction, Monty Sharma, the current chief executive officer of Curves, will become President and CEO of the combined Jenny Craig and Curves business.
“The Jenny Craig and Curves brands will continue to operate independently and provide health, fitness and weight loss solutions to different consumer segments,” said Jon Canarick, North Castle Managing Director. “We believe the two brands give us a unique opportunity to meet the distinct needs of consumers and provide an unmatched consumer value proposition.”
North Castle makes control investments in consumer-driven product and service companies located in North America with enterprise values ranging from $50 million to $500 million. Sectors of interest include: beauty & personal care; consumer health; fitness, recreation & sports; home & leisure; and nutrition. North Castle is headquartered in Greenwich, CT (www.northcastlepartners.com).
“We are very optimistic about the future of the combined company and will work in partnership with management to leverage our knowledge and network across the weight loss, nutrition and fitness industries from our current and prior investments in Atkins, Equinox, World Health Club, EAS and Naked Juice,” concluded Mr. Canarick.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-7-13
