Tivity Acquires Nutrisystem

Question 1

What was the TV and Offer Value?

Answer 1

$1.4b

Question 2

What was the EBITDA X?

Answer 2

15x

Question 3

What was the offer price/share?

Answer 3

$47/share

Question 4

What was the consideration?

Answer 4

$38.75 cash per share and .21 shares of Tivity stock

Question 5

What was the stock premium?

Answer 5

30%

Question 6

What does Tivity health do?

Answer 6

Provides health and wellness programs to seniors and has a fitness facility program that partners with fitness centers to grant access to multiple clubs with one pass. It also provides health services such as acupuncture, chiropractic care and other therapys

Question 7

What kind of move was this for Tivity?

Answer 7

Expanding into the healthy meal kit market to complement its focus on health and wellness.

A lot of competition in meal kits, leverage current brand of nutrisystem with current customer base that Tivity has. Perhaps expand to seniors?

Question 8

What was the market reaction?

Answer 8

Extremely negative reaction. Stock price lost more than 25% of its value in 1 day.