FORT WASHINGTON, Pa.–(BUSINESS WIRE)–Nutrisystem, Inc. (NASDAQ:NTRI),
a number one supplier of weight administration services, introduced
in the present day that it has acquired the South Seashore Food plan model from SBD Holdings
Group Corp., for $15 million. Nutrisystem has additionally entered into an
settlement with the South Seashore Food plan founder, Dr. Arthur Agatston, who
might be becoming a member of the Nutrisystem Science
Advisory Board.
Over the subsequent yr, along with persevering with to develop its core model,
Nutrisystem will start growing South Seashore Food plan meal applications,
merchandise, and providers as a definite model with the intent to launch in
each the direct-to-consumer and retail channels in 2017.
“The South Seashore Food plan is a well known and well-respected model with a
confirmed observe document of serving to individuals shed weight by its
exceptionally profitable books. We stay up for extending the attain
of the model and its ideas by the creation of a meal supply
program that’s easy, simple to observe and based mostly on a
scientifically-proven plan,” mentioned Daybreak Zier, President and CEO of
Nutrisystem. “This acquisition will present shoppers with extra
high quality selections and allow us to seize an much more vital share
of the business weight
loss market as we additional leverage our experience in product
improvement, advertising, ecommerce, provide chain logistics, and retail.”
The South Seashore Food plan was created by Dr. Agatston, a famend
heart specialist from southern Florida, with the purpose of growing a secure
weight-reduction plan for his chubby sufferers to enhance their well being. Dr. Agatston’s
guide, “The South Seashore Food plan,” turned a runaway bestseller and lots of of
the model’s books have appeared on the New York Instances bestseller checklist.
Greater than 23 million copies of the model’s books are in print. The South
Seashore Food plan plan focuses on a balanced, coronary heart wholesome method to weight
loss and upkeep.
“I couldn’t think about a greater place for the South Seashore Food plan to land and
be additional developed,” mentioned South Seashore Food plan founder, Dr. Agatston. “The
administration crew at Nutrisystem has a confirmed observe document of
reinvigorating and leveraging sturdy manufacturers throughout channels. I look
ahead to contributing my experience because the model reaches new heights,
realizes even larger potential and converts on the power to
positively have an effect on the well being and wellness of thousands and thousands of People.”
Acquisition overview
SBD Holdings Group Corp. will proceed to function the South Seashore Food plan
model by July 1, 2016. Throughout this time and the rest of 2016,
Nutrisystem will make investments in product improvement, advertising and
e-commerce for a deliberate re-launch of the South Seashore Food plan in 2017.
Underneath the settlement, Nutrisystem will purchase all registered copyrights,
emblems, and domains from SBD Holdings Group Corp. Because of this
of the above investments, the Firm expects this transaction to be
barely dilutive to earnings in 2016 and accretive to earnings in 2017
because it develops new South Seashore Food plan applications and providers with the
intent to launch in each the direct-to-consumer and retail channels in
2017. Capital expenditures associated to the model are anticipated to be
roughly $2 million in 2016. Monetary projections might be refined
and communicated on the Firm’s This fall convention name.
BTIG, LLC served because the Monetary Advisor and Pepper Hamilton LLP served
because the Authorized Advisor to Nutrisystem on this transaction.
About Nutrisystem, Inc.
Nutrisystem, Inc. (NASDAQ: NTRI)
is a pacesetter within the weight reduction business, having helped thousands and thousands of
individuals shed weight over the course of greater than 40 years. The Firm’s
weight reduction options embrace Nutrisystem® MyWay®, a structured meals
supply program together with a digital platform NuMi®
by Nutrisystem, multi-day kits and particular person merchandise obtainable at
choose stores. The Firm not too long ago launched its all-new Turbo10,
a clinically examined program that delivers as much as a 10-pound weight reduction
and an general discount of 5 inches from the waist, hips, thighs,
chest, and arms in simply the primary month. The Firm’s present product
line presents clients essentially the most meal selections, together with greater than 100
meals containing no synthetic preservatives or synthetic flavors.
Nutrisystem® plans are in line with nationwide tips for dietary
consumption assembly targets for fats, sodium, sugar, ldl cholesterol, fiber and
bodily exercise and embrace complete counseling choices from
skilled weight reduction coaches, registered dietitians and authorized
diabetes educators. Plans will be custom-made to particular dietary wants
and preferences together with the Nutrisystem®
D® program for individuals with Sort 2 diabetes or pre-diabetes. For extra
info, go to NutrisystemNews.com.
