Switzerland's Nestlé today announced it had bought US weight-loss company Jenny Craig for around $600 million.
Jenny Craig, which Nestlé says had sales of over $400 million in the last 12 months, was founded in 1983 by weight-loss guru Jenny Craig, offering dieters prepared meals and exercise programmes.
Nestlé, the world's largest food company, bought the California-based company from a private equity group including ACI Capital and MidOcean Partners, it said, adding the deal would not dilute group earnings.
"This acquisition will . . . reinforce Nestle Nutrition's presence in the USA, the world's largest nutrition and weight management market," Nestlé said.
The acquisition follows Nestlé's purchase of Australia's Uncle Tobys snacks, breakfast and soups business.
Nestlé is increasingly focusing on higher-margin products such as those with nutritional and health benefits. It is expanding in markets, such as the United States, where consumers are willing to buy premium products.
Nestlé shares were up 0.5 per cent earlier this morning, at 370.50 Swiss francs each, underperforming the Swiss blue-chip index, which had risen 0.9 per cent.