Nestle buys weight loss business

Published: 7:11AM Tuesday June 20, 2006 Source: RNZ

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Food giant, Nestle, has bought the American weight-loss company Jenny Craig for around $US600 million.

The deal expands Nestle's high-margin nutrition and health business.

Nestle bought the California-based company, which is reported to have annual sales of over $400 million, from a private equity group.

The acquisition follows Nestle's purchase of Australia's Uncle Toby's snacks, breakfast and soups business from Burns Philp.

Nestle is increasingly focusing on higher-margin products such as those with nutritional and health benefits, and is expanding in markets where consumers are willing to buy premium products, such as the United States.

Jenny Craig was founded in 1983 and offers dieters prepared meals and exercise programs.

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