Nestle has reportedly spoken to a small group of potential buyers in an effort to sell its diet business Jenny Craig, as the world’s largest food group looks to divest underperforming businesses.
Continue Reading Below
Reuters said the Swiss company is already working with Goldman Sachs on the sale process.
Last week, Nestle said unloading low-performing business is a top strategic priority. CEO Paul Bulcke said some businesses have proven to weigh on the company’s overall performance for too long.
Reuters also reported last month that Nestle is interested in selling PowerBar, which makes energy bars.
The company could look to sell ice cream, water or frozen foods businesses as well. Nestle’s stake in L’Oreal cosmetics has also been the subject of speculation.
Nestle declined to comment on the latest report.
Nestle paid $600 million when it purchased Jenny Craig from private equity groups ACI Capital and MidOcean Partners in 2006.
The brand operates weight loss centers and sells packaged foods, but Jenny Craig has struggled amid lackluster economic growth.
Jenny Craig, which competes with other weight loss brands like Weight Watchers International (NYSE:WTW) and NutriSystem (NASDAQ:NTRI), has also been pressured by free online and mobile fitness apps.
Nestle Chief Financial Officer Wan Ling Martello said on an earnings call in August that since last year, Jenny Craig “was very much below our expectations and below what they have been able to do in the last few years.”