MidOcean Partners and ACI Capital Agree to Sell Jenny Craig to Nestle

New York, NY, June 18, 2006 - MidOcean Partners, a New York and London-based private investment firm and ACI Capital, a New York-based private investment firm, today jointly announced the signing of a definitive agreement to sell weight management firm Jenny Craig to Nestle in a transaction valued at approximately $600 million. The transaction is expected to close in the third quarter.

Jenny Craig is one of the largest weight management firms worldwide with over 3,000 employees and over 600 centers in the US, Canada, Australia and New Zealand. Jenny Craig offers a comprehensive program that helps clients lose and maintain their weight by creating a healthy relationship with food, building an active lifestyle and developing a balanced approach to living. Since being acquired by MidOcean Partners and ACI Capital in May 2002, Jenny Craig has grown its revenues and profits substantially by investing in its people and operations and reinvigorating its brand.

Rob Sharp, a Managing Director of MidOcean Partners, said, “We have enjoyed working with our partners at both ACI Capital and Jenny Craig to implement our shared strategic vision for the company. Working together, we expanded the company’s product offerings and enhanced its delivery channels, positioning Jenny Craig for continued success in the rapidly growing weight loss sector. We are proud of our track record of bringing significant value and improvements to our portfolio companies.” Kevin Penn, a Managing Director of ACI Capital, added, “We are very proud of our association with Jenny Craig, which exemplifies our strategy of partnering with talented managers to help grow businesses. Through our collaboration with the Jenny Craig team and our partners at MidOcean, we increased profitability and implemented a number of new strategic initiatives that position the company for future growth. We are confident that Jenny Craig has tremendous opportunities ahead as an integral part of Nestle.”

Patti Larchet, Vice Chair and CEO of Jenny Craig, said, “Partnering with ACI Capital and MidOcean was a great opportunity for us to further develop our business. Their contributions on both a strategic and operational level have been invaluable in helping position us for continued growth. We are excited to be partnering with Nestle Nutrition and believe Jenny Craig will fit nicely into, and in fact complement, their portfolio of branded nutritional products and services. We also believe being a strategic pillar within the Nestle organization will provide us with technical, scientific and nutritional resources to further develop our program and continue to enhance our client experience and results.”

In May 2002, MidOcean Partners and ACI Capital acquired Jenny Craig in a take-private transaction. Sid and Jenny Craig. the company’s founders, invested alongside MidOcean and ACI in the acquisition.

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About ACI Capital
ACI Capital is a leading private investment firm with nearly 50 years of history leading middle-market management buyouts and growth capital investments throughout North America. ACI Capital makes equity investments in market leading public and private companies, partnering with management to increase the value of their businesses. Areas of focus include consumer and lifestyle businesses, franchising, direct marketing and business services. Current ACI Capital portfolio companies include the Sundance Catalog Company, Healthy Directions, Excel Polymers, Accent Energy and Cornhusker Energy Lexington. For more information, visit www.acicapital.com.

About Jenny Craig
The Jenny Craig Program is an effective Food/Body/Mind approach that helps clients manage their weight by creating a healthy relationship with food, building an active lifestyle and developing a balanced approach to living. Jenny Craig provides individualized, safe and effective weight loss and embodies the philosophy of the company’s founders, Sid and Jenny Craig. The company leverages the expertise of its highly regarded Medical Advisory Board, comprised of renowned experts in the fields of medicine, psychology, nutrition, exercise, physiology and lifestyle change. Jenny Craig was started in 1983 in Melbourne, Australia and began its U.S. operations in 1985. The company is now headquartered in Carlsbad, CA and has over 3,000 employees worldwide. For more information visit www.jennycraig.com.

About MidOcean Partners

MidOcean Partners is a premier New York-based alternative asset manager that specializes in middle market private equity and alternative credit investments. Since its inception in 2003, MidOcean Private Equity has managed over $4.5 billion of committed capital and has targeted investments in high-quality middle market companies in the consumer and business services sectors. MidOcean Credit Partners was launched in 2009 and manages approximately $8 billion across a series of alternative credit strategies, collateralized loan obligations (CLOs), and customized separately managed accounts as of November 30, 2018

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