NASHVILLE, Tenn., Dec. 9, 2020 /PRNewswire/ — Tivity Health and fitness (Nasdaq: TVTY) announced today that it has finished the divestiture of its Nourishment Business enterprise, which consists of Nutrisystem® and South Seaside Diet program®, to Kainos Money, a major food and shopper-targeted private equity business, for a overall gross obtain cost of $575 million in hard cash. The Firm employed a considerable vast majority of the divestiture web proceeds to spend down debt, which has materially de-levered its harmony sheet and will present important supplemental economical versatility to help the growth of its go-forward, concentrated health care enterprise. The transaction is predicted to final result in a fourth quarter 2020 put up-near internet leverage ratio of no much more than 2.8x.
“This transaction will empower Tivity Health and fitness to generate sustainable advancement inside of our healthcare business, accelerating our SilverSneakers®, Key® Exercise, WholeHealth Dwelling® and Properly Well™ manufacturers with new electronic engagement equipment and knowledge to develop into a a lot more member-centric organization,” said Anthony Sanfilippo, Chairman of the Board of Administrators, Tivity Well being. “In addition to divesting the Nutrition division, we’ve realigned our organizational composition and sources to ideal supply on our progress possibilities, and we expect to continue on to obtain solid operational functionality as a final result of our disciplined approach. I am incredibly proud of the progress we have manufactured repositioning the small business, accelerating the positive adjust due to the fact Richard Ashworth turned CEO in June. Building on our stable basis and with Richard’s able and concentrated management, I am confident Tivity Wellbeing is on track to grow to be the modern day location for balanced residing.”
“The strategic changes underway at Tivity Well being have unlocked a huge array of fascinating possibilities to promote development in our healthcare business enterprise and provide new and expanded abilities to our users, customers and companions,” stated Richard Ashworth, CEO, Tivity Health. “We have a solid, proficient staff in spot, and have begun a look for for a Main Purchaser Expertise and Innovation Officer, as well as a Chief Data Officer, to support our go-ahead tactic. Tommy Lewis will stay as Chief Working Officer, with a emphasis on supporting our health strategies and physical fitness area companions in our main healthcare commercial operations. As President of the Diet Division, Tommy orchestrated an spectacular turnaround, significantly bettering the Division’s performance in just in excess of ten months. We are grateful for his contributions and happy that our healthcare company will keep on to benefit from his specialist steerage. I appear ahead to sharing far more about our go-ahead technique on our fourth quarter and total 12 months earnings phone in February.”
Lazard acted as the exclusive monetary advisor to Tivity Health and fitness on the sale of its Diet Business enterprise and Bass, Berry and Sims PLC served as legal counsel.
About Tivity Wellbeing
Tivity Wellness® (Nasdaq: TVTY) is a leading supplier of healthy everyday living-transforming methods, such as SilverSneakers®, Prime® Fitness WholeHealth Residing® and Correctly Well™. We are actively addressing the social determinants of overall health, described as the conditions in which we get the job done, stay and participate in. From improving health results to reversing the narrative on inactivity, food items insecurity, and social isolation and loneliness, we are producing a variation and are reworking the way we do health and fitness. Find out much more at TivityHealth.com.
About Kainos Money
Kainos Capital is a center industry non-public equity agency with an exceptional concentrate on the meals and client merchandise sectors. The Kainos crew has comprehensive financial investment and functioning experience in the field, possessing invested about $2 billion of fairness in much more than 75 transactions with a total transaction worth in surplus of $11 billion. The firm’s method is to construct a diversified portfolio of escalating and strategically pertinent food stuff and buyer firms that trade potential buyers would like to receive. For a lot more information, stop by Kainos Capital’s internet site at www.kainoscapital.com.
Cautionary Assertion Regarding Ahead-Looking Statements
This press launch incorporates specific statements that are “ahead-hunting” statements in just the that means of the federal securities legislation, together with Segment 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Exchange Act of 1934, as amended. These ahead-searching statements are centered on current expectations and consist of all statements that are not historical statements of actuality and these pertaining to the intent, belief or anticipations, together with, with no limitation, statements that are accompanied by words and phrases this kind of as “will,” “expect,” “outlook,” “foresee,” “intend,” “prepare,” “imagine,” “look for,” “see,” “will,” “would,” “target,” or other comparable words and phrases, phrases or expressions and versions or negatives of these text. Viewers of this press launch need to realize that these statements are not guarantees of performance or effects. Many challenges and uncertainties could affect precise success and result in them to range materially from the forward-on the lookout statements. These hazards and uncertainties include, among the other issues: the failure to obtain the predicted gains from the divestiture transaction the threat that the Company’s anticipations about the result of the transaction on the Firm’s leverage profile could not be realized the profitability of the Company’s enterprise going forward continuing impacts from the COVID-19 pandemic (which includes the response of governmental authorities to fight and consist of the pandemic, the closure of health and fitness facilities in the Company’s nationwide community (or operational limitations imposed on such health facilities), and potential reclosures as a result of modern surges in good COVID-19 cases) on the Company’s enterprise, operations or liquidity the threat that the Company’s indebtedness may restrict the Firm’s ability to adapt to improvements in the overall economy or current market circumstances, expose the Company to desire amount possibility for the variable price indebtedness and call for a major portion of cash flows from functions to be devoted to the payment of indebtedness the Company’s means to assistance its financial debt, make principal and curiosity payments as those people payments develop into due, and continue to be in compliance with its personal debt covenants the risks associated with modifications in macroeconomic circumstances (like the impacts of any economic downturn or modifications in purchaser investing resulting from the COVID-19 pandemic), prevalent epidemics, pandemics (this sort of as the existing COVID-19 pandemic) or other outbreaks of condition, geopolitical turmoil, and the continuing threat of domestic or intercontinental terrorism the Company’s capability to gather accounts receivable from its clients and amounts due underneath its sublease agreements the market’s acceptance of the Firm’s new solutions and expert services the Firm’s potential to produce and implement effective techniques and to anticipate and answer to strategic improvements, alternatives, and emerging trends in the Company’s sector and/or organization, as effectively as to precisely forecast the similar affect on the Company’s revenues and earnings counterparty possibility related with the Company’s fascination rate swap agreements the Firm’s capacity to obtain adequate funding to give the capital that may be important to assistance its existing or upcoming operations the impact of any impairment of the Company’s goodwill, intangible property, or other lengthy-term property the risks affiliated with possible failures of the Firm’s info units or all those of 3rd-celebration suppliers, which includes as a result of telecommuting issues related with personnel doing the job remotely, which may consist of a failure to execute on policies and procedures in a work-from-dwelling or remote model the risks connected with details privacy or stability breaches, computer hacking, community penetration and other unlawful intrusions of the Company’s facts techniques or individuals of 3rd-party sellers or other services vendors, which include those people pitfalls that end result from the raise in personnel functioning remotely, which may outcome in unauthorized entry by 3rd functions, reduction, misappropriation, disclosure or corruption of client, employee or the Company’s details, or other data subject to privacy guidelines and may well direct to a disruption in the Company’s business, expenses to modify, enhance, or remediate its cybersecurity actions, enforcement steps, fines or litigation versus the Corporation, or harm to its company reputation the impression of any new or proposed laws, restrictions and interpretations relating to Medicare, Medicare Benefit, Medicare Health supplement, e-commerce, promotion, and privacy and protection legal guidelines the effect of a reduction in Medicare Benefit wellness system reimbursement charges or variations in system style and design the Company’s means to catch the attention of, retain the services of, or retain crucial personnel or other experienced personnel and to command labor fees the pitfalls involved with alterations to standard business-centered business enterprise procedures and/or conducting operations out of the business office in a get the job done-from-property or distant design by the Business or its 3rd-bash sellers throughout adverse scenarios (e.g., during a disaster, disaster, or pandemic), which may consequence in supplemental costs and/or may negatively influence productivity and result in other disruptions to the Firm’s company the performance of the reorganization of the Firm’s small business and the Firm’s means to realize the anticipated advantages the Firm’s skill to correctly compete towards other entities, whose monetary, investigation, personnel, and marketing and advertising assets could exceed its assets the impact of legal proceedings involving the Corporation and/or its subsidiaries, products and solutions, or solutions, including any statements associated to intellectual residence rights the Firm’s means to enforce its mental house rights the challenges related with deriving a important focus of revenues from a minimal amount of the Firm’s shoppers, several of whom are wellbeing options the Company’s ability and/or the potential of its prospects to enroll individuals and to properly forecast their level of enrollment and participation in the Company’s applications in a method and inside of the timeframe anticipated by the Business the Firm’s potential to sign, renew and/or retain contracts with its shoppers and/or the Company’s fitness husband or wife areas beneath existing phrases or to restructure these contracts on phrases that would not have a content negative impression on the Company’s success of functions the skill of the Company’s health and fitness strategy prospects to manage the selection of protected lives enrolled in those wellness programs for the duration of the terms of the Company’s agreements the Firm’s capability to include and/or keep compensated subscribers in its Primary Health and fitness plan the impact of serious or adverse temperature circumstances, the recent COVID-19 pandemic, and the possible emergence of supplemental health and fitness pandemics or infectious disease outbreaks on member participation in the Company’s courses the affect of healthcare reform on the Firm’s company the success of the Company’s marketing and advertising and advertising applications the Firm’s capacity to produce and commercially introduce new merchandise and expert services and other pitfalls specific in the Company’s filings with the Securities and Trade Commission.
Source Tivity Health and fitness, Inc.