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NutriSystem Acquires South Beach Diet Brand

Dec. 18, 2015 – Nutrisystem (NTRI) announced that it has acquired the South Beach Diet brand from SBD Holdings Group Corp., for $15 million. Nutrisystem has also entered into an agreement with the South Beach Diet founder, Dr. Arthur Agatston, who will join the Nutrisystem Science Advisory Board.

During 2016, in addition to growing its core brand, Nutrisystem will begin developing South Beach Diet meal programs, products, and services as a distinct brand with the intent to launch in both the direct-to-consumer and retail channels in 2017.

“We look forward to extending the reach of the brand and its principles through the creation of a meal delivery program that’s simple, easy to follow and based on a scientifically-proven plan,” said Dawn Zier, President and CEO. “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.”

SBD Holdings Group Corp. will continue to operate the South Beach Diet brand through July 1, 2016. During this time and the remainder of 2016, Nutrisystem will make investments in product development, marketing and e-commerce for a planned re-launch of the South Beach Diet in 2017. Under the agreement, Nutrisystem will acquire all registered copyrights, trademarks, and domain names from SBD Holdings Group Corp.  Capital expenditures related to the brand are anticipated to be approximately $2 million in 2016.

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