Goldman Sachs Group Inc (NYSE:GS) is assisting Nestle SA (VTX:NESN)selling its Jenny Craig diet business, the firm is currently looking for potential buyers and also in talk with some small groups about the brand sale, revealed by the people have the knowledge of the matter.
The sources, anonymous, who declined to be disclosed as the discussion are private, also revealed on Tuesday that the possible sale comes following the globe’s biggest food group last week said that to get rid of weak-performing businesses was a peak strategic priority of the production and development of beverage and food.
Paul Bulcke CEO of the company has said that the company want to get rid of some businesses had been a dragging for long ago.
But both Goldman Sachs Group Inc (NYSE:GS) and Nestle declined to comment on the recent deal. While Reuters last month declared that Switzerland-based holding company was in search to get rid of its Power-Bar energy bar business.
While analyst at Liberum Capital, also expect that other potential areas in which the company is not performing well may also include frozen foods, water business and ice-cream. I spite of food items the company may also get rid of cooking and table sauces business, and its stake in L’Oreal cosmetics.
In 2006, the company purchased Jenny Craig from MidOcean Partners and ACI Capital, private equity firms for $600 million in order to expand its nutrition business.
The unit that the nutrition firm is currently selling is hit hard by economic slowdown, as many of the unit’s brands are put down by consumers to expand on it, especially the products like sells packaged food and weight loss centers.
In an August financial result, Wan Ling Martello, the company Chief Financial Officer has said, the firm does not reveal profit by businesses, but the company Jenny Craig business for consecutive two years less than the company estimate and less than the efforts made by the company with this business in the last few years.
Mainly Jenny Craig’s business strategy is greatly affected by the increasing demands of mobile fitness apps and free online that permit clients to lose weight on their own through exercise and diet routines without spending on diet programs. Goldman Sachs Group Inc (NYSE:GS) shares fell -0.78% to $153.05 in last trading session.