Clinton Group Urges Nutrisystem To Sell Itself - Quick Facts

(RTTNews) - Activist investor Clinton Group Inc on Tuesday urged weight management products company Nutrisystem Inc (NTRI) to sell itself. Clinton Group is the investment manager to several partnerships and funds that collectively own a significant stake in the common stock of Nutrisystem.

"We have been patient during the turnaround over the last few years and commend the management team, led by Dawn Zier, on their achievements to date," said Joseph De Perio, Senior Portfolio Manager of the Clinton Group. "However, the stock price fails to represent the progress to date and significant upside of Nutrisystem brand. Over the past year, we have had several conversations with Ms. Weir regarding a larger scale stock buyback and an increase in the dividend. Given the continuation of the market's divergent view, we are now inclined to push the Board of Directors to take steps to maximize shareholder value in a sale process."

In a letter to Nutrisystem CEO Dawn Zier, Clinton Group said that while the company is on target to grow EPS by 60% year-over-year, and there is improvement in revenue and margins, the stock price performance indicates a divergent view to the company's progress in the past two quarters.

"While operating performance has been commendable, the Company has not been sufficiently attentive to its status as a public company nor provided shareholders with the information required for good investment decision making," Clinton Group said.