- Nutrisystem (NASDAQ:NTRI -3.6%) has acquired the South Beach Diet brand from its owner, SBD Holdings, and giving a role to the diet's founder, Dr. Arthur Agatston.
- Nutrisystem paid $15M in the deal and will develop South Beach Diet as a distinct brand, both in direct-to-consumer and retain channels, along with work on its core brand.
- Agatston will join Nutrisystem's Science Advisory Board. SBD Holdings will continue to operate the brand through July 1; then Nutrisystem will begin investing toward a 2017 re-launch.
- Nutrisystem says it expects the deal will be slightly dilutive to earnings in 2017 -- it's planning $2M in capex related to the new brand -- and then accretive in 2017.