Franklin-based Trivity Health purchased Nutrisystem for $1.3 billion. // Photo courtesy of Nutrisystem
By MATT BLOIS
A Franklin company that offers diet plans and fitness programs recently acquired the home-delivery diet company Nutrisystem.
Trivity Health announced its plan to purchase Nutrisystem in December, and completed the deal last week. Trivity 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. Trivity 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,” Trivity CEO Donato Tramuto said, according to a press release published on March 8.
Today we completed our acquisition of @Nutrisystem, making us unique in offering, at scale, an integrated portfolio of fitness, nutrition and social engagement solutions that support overall health and wellness. https://t.co/sj2UNJymVO pic.twitter.com/GPz6hj0FlR
— Tivity Health (@TivityHealth) March 8, 2019
Nutrisystem shareholders approved the transaction earlier this month. They will receive $38.75 and a fraction of Trivity 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, Trivity’s stock price fell from about $40 to about $28. Trivity financed the purchased through a new $1.2 billion loan and cash.
Trivity 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 Trivity and will join the board of directors. She will be responsible for Trivity’s health care and nutrition programs. Nutrisystem’s former Chief Marketing Officer Keira Krausz will be a division president at Trivity.