A Franklin company that offers diet plans and fitness programs recently acquired the home-delivery diet company Nutrisystem.
Tivity Health announced its plan to purchase Nutrisystem in December, and completed the deal last week. Tivity bought the company for $1.3 billion in cash and stock.
Nutrisystem, which has its headquarters in Pennsylvania, delivers portion-controlled meals to consumers on a diet. Tivity includes several other diet and fitness brands, such as the South Beach Diet.
“Tivity Health is now a formidable player in where the market is going – moving away from merely ‘sick care’ toward fully addressing healthcare,” Tivity CEO Donato Tramuto said, according to a press release published on March 8.
Nutrisystem shareholders approved the transaction earlier this month. They will receive $38.75 and a fraction of Tivity stock for each share of Nutrisystem. The last trading day before the announcement of the purchase Nutrisystem was trading at about $34.20.
On the first trading day after the announcement, Tivity’s stock price fell from about $40 to about $28. Tivity financed the purchased through a new $1.2 billion loan and cash.
Tivity plans to maintain all of Nutrisystem’s existing brands and the Pennsylvania headquarters.
Former Nutrisystem CEO Dawn Zier will become the Chief Operating Officer of Tivity and will join the board of directors. She will be responsible for Tivity’s health care and nutrition programs. Nutrisystem’s former Chief Marketing Officer Keira Krausz will be a division president at Tivity.