Nestle to buy Jenny Craig for $600 million
Swiss company seeks to capitalize on weight-loss trend
Updated: 12:23 a.m. ET June 19, 2006
GENEVA, Switzerland - In a move that recognizes the modern world’s twin obsessions — indulgence and guilt — chocolate maker Nestle said Monday it would purchase weight loss product maker Jenny Craig Inc. for $600 million.
The acquisition follows Nestle S.A.’s purchase for around $670 million last month of Uncle Tobys, an Australian maker of nutritional cereals and snacks, and is part of the company’s “continuing commitment to nutrition, health and wellness,” the Swiss company said in a statement.
While best known for its namesake chocolates, the Vevey-based also makes baby formulas, nutrition foods such as PowerBar, drinks to aid weight loss and the Lean Cuisine line. The company’s purchase of Jenny Craig follows the lead of consumer products company Unilever, which bought both Ben & Jerry’s ice cream and Slim Fast in 2000.
Weight management will become a new business within Nestle’s nutrition unit and will reinforce its U.S. presence, the company said.
