Nutrisystem, Inc. Acquires South Beach Diet Brand from SBD Holdings Group Corp.
17 Diciembre 2015 - 4:24PM
Business Wire
Acquisition Broadens Industry Footprint and
Expands Addressable Market Opportunity
Nutrisystem, Inc. (NASDAQ:NTRI), a leading provider of weight
management products and services, announced today that it has
acquired the South Beach Diet brand from SBD Holdings Group Corp.,
for $15 million. Nutrisystem has also entered into an agreement
with the South Beach Diet founder, Dr. Arthur Agatston, who will be
joining the Nutrisystem Science Advisory Board.
Over the next year, in addition to continuing to grow its core
brand, Nutrisystem will begin developing South Beach Diet meal
programs, products, and services as a distinct brand with the
intent to launch in both the direct-to-consumer and retail channels
in 2017.
“The South Beach Diet is a well-known and well-respected brand
with a proven track record of helping people lose weight through
its exceptionally successful books. We look forward to
extending the reach of the brand and its principles through the
creation of a meal delivery program that’s simple, easy to follow
and based on a scientifically-proven plan," said Dawn Zier,
President and CEO of Nutrisystem. "This acquisition will provide
consumers with additional quality choices and enable us to capture
an even more significant share of the commercial weight loss
market as we further leverage our expertise in product development,
marketing, ecommerce, supply chain logistics, and retail.”
The South Beach Diet was created by Dr. Agatston, a renowned
cardiologist from southern Florida, with the goal of developing a
safe diet for his overweight patients to improve their health. Dr.
Agatston's book, "The South Beach Diet,” became a runaway
bestseller and many of the brand’s books have appeared on the New
York Times bestseller list. More than 23 million copies of the
brand’s books are in print. The South Beach Diet plan focuses on a
balanced, heart healthy approach to weight loss and
maintenance.
"I couldn’t imagine a better place for the South Beach Diet to
land and be further developed," said South Beach Diet founder, Dr.
Agatston. “The management team at Nutrisystem has a proven track
record of reinvigorating and leveraging strong brands across
channels. I look forward to contributing my expertise as the brand
reaches new heights, realizes even greater potential and converts
on the ability to positively affect the health and wellness of
millions of Americans.”
Acquisition overview
SBD Holdings Group Corp. will continue to operate the South
Beach Diet brand through July 1, 2016. During this time and
the remainder of 2016, Nutrisystem will make investments in product
development, marketing and e-commerce for a planned re-launch of
the South Beach Diet in 2017.
Under the agreement, Nutrisystem will acquire all registered
copyrights, trademarks, and domain names from SBD Holdings Group
Corp. As a result of the above investments, the Company
expects this transaction to be slightly dilutive to earnings in
2016 and accretive to earnings in 2017 as it develops new South
Beach Diet programs and services with the intent to launch in both
the direct-to-consumer and retail channels in 2017. Capital
expenditures related to the brand are anticipated to be
approximately $2 million in 2016. Financial projections will be
refined and communicated on the Company’s Q4 conference call.
BTIG, LLC served as the Financial Advisor and Pepper Hamilton
LLP served as the Legal Advisor to Nutrisystem in this
transaction.
About Nutrisystem, Inc.
Nutrisystem, Inc. (NASDAQ: NTRI) is a leader in the weight
loss industry, having helped millions of people lose weight over
the course of more than 40 years. The Company’s weight loss
solutions include Nutrisystem® MyWay®, a structured food delivery
program including a digital platform NuMi® by Nutrisystem,
multi-day kits and individual products available at select retail
outlets. The Company recently launched its all-new Turbo10, a
clinically tested program that delivers up to a 10-pound weight
loss and an overall reduction of five inches from the waist, hips,
thighs, chest, and arms in just the first month. The Company’s
current product line offers customers the most meal choices,
including more than 100 foods containing no artificial
preservatives or artificial flavors. Nutrisystem® plans are
consistent with national guidelines for dietary intake meeting
targets for fat, sodium, sugar, cholesterol, fiber and physical
activity and include comprehensive counseling options from trained
weight loss coaches, registered dietitians and certified diabetes
educators. Plans can be customized to specific dietary needs and
preferences including the Nutrisystem® D® program for people with
Type 2 diabetes or pre-diabetes. For more information, go to
NutrisystemNews.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20151217006561/en/
IR:ICR, Inc.John Mills,
646-277-1254Partnerir@nutrisystem.comJohn.Mills@Icrinc.comorMedia:Nutrisystem,
Inc.Robin McConnell Shallow, 914-841-5572VP
Communicationsrshallow@nutrisystem.com
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