Kainos Capital, a private equity firm focused exclusively on the food and consumer industry, announced that it has agreed to acquire Nutrisystem, the preeminent direct-to-consumer nutrition and weight management brand, from Tivity Health for $575 million.
For over 45 years, Nutrisystem's clinically proven plans have helped millions of people lose weight safely and effectively. Nutrisystem provides a balanced and clinically proven approach to weight loss with portion-controlled foods specifically designed to meet consumer needs that are conveniently delivered directly to customers' doors. The company's portfolio of entrées, snacks, and shakes is complemented by various live counseling options, including trained weight loss coaches, registered dietitians and certified diabetes educators that are available seven days a week. Nutrisystem also provides a free digital app, NuMi, that helps customers track performance and achieve their goals.
The Kainos team has invested in a number of businesses within the health and wellness space including SlimFast, which it acquired from Unilever in 2014 and sold to Glanbia plc in 2018.  During Kainos' ownership, SlimFast became the fastest-growing brand in the weight management category at retail for three years in a row. The Private Capital Group of MSD Partners, L.P. is partnering with Kainos Capital in this transaction in the form of a preferred and common equity investment.
Completion of the transaction is expected in the fourth quarter, subject to customary closing conditions.