Nutrisystem buys South Beach Diet, anticipates 2017 relaunch
FORT WASHINGTON, Pa. - Nutrisystem announced Thursday that it has acquired the South Beach Diet brand from SBD Holdings Group for $15 million. Nutrisystem has also entered into an agreement with the South Beach Diet founder, 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," stated Dawn Zier, president and CEO Nutrisystem. "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," she said. "This acquisition will ... 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.”
SBD Holdings Group 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.
BTIG served as the financial advisor and Pepper Hamilton served as the legal advisor to Nutrisystem in this transaction.