Tivity Health to buy Nutrisystem for $1.4 billion
Tivity Health said on Monday it would buy diet plan developer Nutrisystem for $1.4 billion in cash and stock, as it looks to expand its presence in the lucrative weight management market.
Nutrisystem shareholders will get $38.75 per share in cash and 0.2141 Tivity Health shares for each share of Nutrisystem common stock, Tivity said.
The company said it expects double-digit accretion to Tivity Health’s adjusted earnings in 2020 and beyond, and annual cost savings of about $30 million to $35 million.
Tivity works with health centers across the United States where it provides fitness and exercise programs, including one designed for seniors, while Nutrisystem designs weight loss plans and provides nutritious meals on order.
Tivity plans to finance the cash portion of the acquisition, expected to close in the first quarter of 2019, with a fully committed term loan financing from Credit Suisse and existing cash on hand.
Article source: CNBC.com
Didn’t see where Nutrisystem customers would get millions back from the sale?
Of course not, because it’s NOT in the best interest of the company’s business model, their shareholders, and, it’s not the customer’s company. This company, along with thousands of publicly held companies belong to the SHAREHOLDERS.
Shareholders expect to make money no matter what you sell. And, as CEO, your job is to NOT provide high priced, high quality product to your customer, your job is to increase company value, and a greater return for SHAREHOLDERS’ investments. This means, if the CEO has to lower the quality of ingredients for a cheaper alternative to increase revenue and profitability, so be it, or get a pink slip.
This is NOT to bash Nutrisystem or Tivity, we’re just spotlighting the industry and how cutthroat the market is. YOU and ME, the consumer is NOT as important as you were made to believe. The consumer’s part is to be attracted to quicker, cheaper, fad and shiny ads to get them to purchase the product. That’s it. So just like ALL publicly held companies, Nutrisystem’s executives has a job to do.
With that said, if you’re a KEY shareholder of Nutrisystem, congratulations and Merry Christmas. But if you’re a customer, there’s a good chance you’re not getting a check from this deal anytime soon. It’s outside their pay grade.
BUT GOOD NEWS: what if you COULD achieve your body goal and turn it into a money making opportunity at the same time? What if you could share among the wealth of a company that not only invest in almost the same amount of money most publicly held companies spend on TV ads, but also invest in providing high quality ingredients that actually work WITH your body to help you achieve that goal quickly yet safely?
If you know you’re not getting a piece of this $1.4 billion payoff, and you’ve worked so hard, and spent so much TIME and money to really get your health on check, it’s time to get FINANCIALLY…even.