Jenny Craig Goes "Crunch" After Sellout

After an historic buyout today, the same company that helps you gain weight can now help you lose weight. Chocolate giant Nestlé announced on Monday that it would purchase weight loss juggernaut Jenny Craig Inc. for $600 million. Last month, Nestlé also bought Australian manufacturer Uncle Tobys, a company that makes nutritional cereals and snacks. Nestlé says that this is part of an overall commitment to nutrition, health and wellness.

The current management team of Jenny Craig will continue to run the business and report directly to Nestlé. The transaction is expected to close in the third quarter.

This newsblog thinks that Nestlé would really have to mess up really good now to lose money, as their business model is perfect for yo-yo dieters. You can eat a Crunch bar, then get back on the Jenny Craig diet. Induldge in Toll House cookies. Diet again as penance. Rinse, repeat. We're no market experts or anything, but we can't imagine this business model would really hurt Nestlé's stock at all. (Read full article)