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Deal Detail
Nutrisystem, Inc. to Tivity Health, Inc.
EV / LTM EBITDA
12.6x
EV / LTM Sales
-
Enterprise Value
$1.3B
Primary Source
Evercore
Comparable Transactions
Consumer Health transactions announced in the five years to December 2018. 11 with a disclosed multiple.
| Date | Target | Acquiror | Enterprise Value | EV/Sales | EV/EBITDA | Type |
|---|---|---|---|---|---|---|
| Nov 2018 | PhD Nutrition Ltd | Science in Sport plc | - | - | 11.4x | Strategic |
| Oct 2018 | Slim-Fast Foods | Glanbia PLC | $350M | 1.6x | 14.6x | Strategic |
| Apr 2018 | Merck KGaA (consumer health business) | The Procter & Gamble Company | $4.2B | - | 19.5x | Strategic |
| May 2017 | Nutraceutical International Corp. | HGGC LLC | - | - | 9.2x | Strategic |
| Aug 2016 | Vitaco Holdings Limited | Investors Group Inc. | - | - | 14.7x | Financial |
| Sep 2015 | Swisse Wellness Pty Ltd. | Biostime Healthy Australia Pty Ltd. | $1.2B | - | 10.2x | Strategic |
| Jun 2015 | Vega | The WhiteWave Foods Company, WhiteWave Foods | - | - | 30.5x | Strategic |
| Jun 2014 | Healthy Directions, LLC | Helen of Troy Limited | - | - | 8.0x | Strategic |
| Jun 2014 | CytoSport Holdings, Inc. | Hormel, Hormel Foods Corporation | - | - | 15.0x | Strategic |
| May 2014 | Merck Consumer Care | Bayer AG | - | - | 21.0x | Strategic |
| Jan 2014 | Jamieson Laboratories Ltd. | CCMP Capital Advisors, LP | - | - | 10.0x | Financial |
| Mean | - | 14.9x | ||||
| Median | - | 14.6x |
All Observations
Source-specific multiples and notes for this transaction.
| Comp | Primary? | Source Type | Source | Source Advisor | Source Year | EV (USD) | EV/Sales | EV/EBITDA | EV/Fwd EBITDA | Note | Citation |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Primary | fairness opinion | NTRI FO | Evercore | 2018 | $1.3B | - | 12.6x | 11.1x | Target's own FO (Evercore, DEFM14A filed 2019-02-05). EV and multiples are DERIVED from figures the filing discloses; Evercore states no enterprise value or implied transaction multiple for Nutrisystem itself. Merger consideration $47.44 per share ($38.75 cash + 0.2141 of a Tivity Health share, valued at the 2018-12-07 close, the last trading day before announcement). Evercore applied a precedent-transaction reference range of 11.0x-13.0x to estimated Adjusted EBITDA for the year ending 2018-12-31, indicating implied equity of $41.76-$48.78 per share; the 2.0x spread maps to $7.02, giving Adjusted EBITDA of $3.51 per share and net CASH of $3.15 per share. Enterprise value per share is therefore 47.44 - 3.15 = $44.29, i.e. 12.6x FY2018E Adjusted EBITDA. Cross-check: the comparable companies analysis (8.5x-11.5x on FY2019E Adjusted EBITDA, implying $37.06-$49.02 per share) independently solves to net cash of $3.17 per share - within two cents of the precedent-derived figure - and gives 11.1x forward. On 29,496,562 shares outstanding at the 2019-01-23 record date: equity $1,399m, net cash $93m, EV $1,306m, FY2018E Adjusted EBITDA ~$104m, FY2019E ~$118m. Equity of ~$1.4bn is consistent with the pro forma 'estimated fair value of consideration to be transferred' of $1.3 billion, which is measured at the later and lower Tivity price of $43.48. Advisor range carried here is Evercore's applied 11.0x-13.0x. | Open |