- Unilever is said to be weighing a $1.7 billion sale of its SlimFast weight-loss brand.
- No suitor has emerged, and it's unclear if Unilever has hired investment bankers to orchestrate a transaction.
- Unilever paid $2.4 billion for the business in 2000.
- Talk of a sale comes just months after rival Nestle sold its Jenny Craig brand for roughly half what it had paid seven years earlier.
No surprise here. We said back in October that we expected a widespread dumping of the weight-loss brands of old. There's simply no way those brands can compete with the 100% free, self-help, eat-healthy support groups that have filled the Web.
What is a bit surprising is that Unilever would float a price of $1.7 billion. If news reports are accurate, SlimFast has only about $300 million a year in revenue. We simply can't imagine a scenario where anyone would pay more than three times annual revenue to buy a weight-loss brand.