According to three sources who had knowledge of the matter who told Reuters, Nestle had been thinking of selling its Jenny Craig diet business. The sources also added that the world's largest food group had been talking to potential buyers about the sale of the diet brand. Goldman Sachs was reportedly tapped to assist Nestle with the process.
The report came just after Nestle Paul Bulcke said it would be selling assets that were no longer profitable for the company. Bulcke stressed that the move should had been done a long time and that it is currently the top priority of the company.
In an earnings call on August, Nestle Chief Financial Officer Wan Ling Martello had said, "We do not disclose profit by businesses, but I will tell you that the Jenny Craig business - this year as well as last year - was very much below our expectations and below what they have been able to do in the last few years."
Jenny Craig was purchased by Nestle back in 2006 for USD600 million from previous owners MidOcean Partners and ACI Capital. The purchase was done as a move to expand to the nutrition market.
Join the Conversation