The world's biggest food group Nestle said on Thursday it was selling its Jenny Craig weight management businesses in North America and Oceania to private equity firm North Castle Partners for an undisclosed sum.
The Jenny Craig business in France is not part of the deal, Nestle said in a statement, adding that the new owners will offer employment to Jenny Craig staff in North America and Oceania.
Reuters reported last month that Nestle was looking to sell the business as part of a larger drive to divest underperforming brands.
Nestle bought Jenny Craig in 2006 for $600 million from private equity groups ACI Capital and Mid Ocean Partners as part of its push into nutrition.
North Castle Partners specializes in health and wellness businesses. Its portfolio includes the Curves International fitness club chain and Elizabeth Arden Red Door Spas.