Nutrisystem Buys South Beach Diet for $15 Million
Nutrisystem has bought South Beach Diet from SBD Holdings Group Corp. for $15 million. Fort Washington, Pa.-based Nutrisystem plans to re-launch the South Beach Diet brand as a meal delivery program in both the direct-to-consumer and retail channels in 2017.
South Beach Diet was developed by Dr. Arthur Agatston, a cardiologist from southern Florida who sold 23 million copies of a book detailing his plan on how to eliminate cravings and reprogram your body to lose weight. Agatston will now serve on the Nutrisystem Science Advisory Board.
“This acquisition will provide consumers with additional quality choices and 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, e-commerce, supply chain logistics and retail,” said Dawn Zier, president and CEO of Nutrisystem in a statement.
Agatston said he “couldn’t imagine a better place for the South Beach Diet to land and be further developed. The management team at Nutrisystem has a proven track record of reinvigorating and leveraging strong brands across channels. I look forward to contributing my expertise as the brand reaches new heights, realizes even greater potential and converts on the ability to positively affect the health and wellness of millions of Americans.”
Perhaps the deal will help Nutrisystem’s stock price, which has fallen steadily over the past few months. It closed at $27.39 on October 12 but opened on Friday at just $21.12 — a decline of nearly 23 percent.
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