Rabobank provided debt financing to Kainos Capital, a private equity firm focused on the food and consumer industry, in its acquisition of Nutrisystem, a direct-to-consumer nutrition and weight management brand for $575 million.

The private capital group of MSD Partners is partnering with Kainos Capital in this transaction in the form of a preferred and common equity investment.

“We are excited to reestablish Nutrisystem as an independent company that is well positioned to help the significant portion of the U.S. population that wants to be healthier, yet struggles with weight management. For the approximately 40% of adults who are considered overweight — and increasingly at risk for a range of serious conditions — Nutrisystem can play an important role in helping improve quality of life. Nutrisystem is a valuable partner to its customers, particularly during the COVID pandemic when it is more challenging for many people to access affordable, healthy meals,” Andrew Rosen, managing partner of Kainos, said.

“We look forward to working with the Nutrisystem management team to achieve the full potential of this incredible brand similar to what we accomplished with SlimFast. Nutrisystem offers its customers a complete, cost effective weight loss program that is proven, great tasting, and incredibly convenient, with no initiation or recurring membership fees. Customers don’t need to leave their homes to travel to a weight loss center for scheduled appointments, and they don’t need to weigh their food or count calories. Everything customers need to accomplish and sustain their weight management goals is delivered right to their doors. Nutrisystem provides the most effective and convenient weight loss platform to help customers lead healthier, happier lives,” Bob Sperry, a partner of Kainos, said.

“We have tremendous respect for the franchise Kainos has built in health and wellness brands and are thrilled to be partnering with them in the acquisition of Nutrisystem. This investment is a perfect example of both MSD’s application of deep domain expertise in technology-driven, direct-to-consumer businesses, and our unique ability to construct creative, flexible capital solutions at scale,” John Civantos, co-head of the private capital group of MSD Partners, said.

Completion of the transaction is expected in the fourth quarter, subject to customary closing conditions.

Winston & Strawn is serving as legal counsel to Kainos.