OWINGS MILLS, Md., June 2, 2014 /PRNewswire/ -- Medifast, Inc.
(NYSE: MED), a leading United
States manufacturer and provider of clinically proven,
portion-controlled weight-loss products and programs, announced
today that a subsidiary of Medifast has entered into an agreement
to sell an additional 12 Medifast Weight Control Centers located in
Northern Virginia and Southern Maryland to TRANSFORMU, a
South Carolina-based LLC.
The Centers will be operated as Medifast Weight Control
Centers by TRANSFORMU under franchise agreements with another
Medifast subsidiary. The sale is subject to customary closing
conditions.
![Medifast, Inc. is a leading United States manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs. Medifast, Inc. is a leading United States manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs.](http://photos.prnewswire.com/prnvar/20140602/93397)
This deal advances Medifast's previously announced plan to
transition their corporate Weight Control Centers to the franchise
model. Under Medifast's franchise model and through its Weight
Control Centers, TRANSFORMU will help members define specific
needs, maximize plan effectiveness and enable members to achieve
lasting results through tailored weight loss and weight management
plans.
"This sale is another critical milestone in our strategic plan
to transition to a franchise model," said Mike MacDonald, Chairman and Chief Executive
Officer of Medifast. "D.C. is a major market for us and TRANSFORMU
is well respected in the weight loss center business. This
demonstrates their tremendous confidence in our brand and in our
program. We look forward to working with TRANSFORMU to support
their efforts."
The senior management team of TRANSFORMU brings tremendous
experience in the weight loss center business. "We are
excited to enter the D.C. market under the banner of a premier
brand like Medifast," said Ron
Fields, Chief Executive Officer of TRANSFORMU. "Acquiring
the Medifast Weight Control Centers will allow us to fulfill our
mission and passion to make a difference in the lives of
individuals and the greater community. We look forward to guiding
clients through their weight loss journeys and supporting them in
reaching their goals."
MED-G
About Medifast:
Medifast (NYSE: MED) is the leading easy-to-use, clinically
proven, portion-controlled weight-loss program. The company sells
its products and programs via four unique distribution channels: 1)
the Web and national call centers, 2) the Take Shape For Life
personal coaching division, 3) Medifast Weight Control Centers, and
4) a national network of physicians. Medifast was founded
in 1980 and is located in Owings Mills, Maryland. For more information, log
onto www.MedifastNow.com.
About TRANSFORMU LLC:
TRANSFORMU is a South
Carolina-based LLC organized for the purposes of purchasing
the assets of Medifast Weight Control Centers and acquiring
franchise rights from certain Medifast's subsidiaries, by
James S. Smith, Ron M. Fields, Jr. and Norma Hubble. The organization will acquire
Medifast franchise rights for the D.C. market area.
Forward-looking Statements:
Forward-looking statements in this press release regarding our
expectations, plans, anticipated benefits related to the sale, the
closing of the sale, and all other statements that are not
historical facts, are made under the safe harbor provisions of the
private securities litigation reform act of 1995. These statements
are based on assumptions believed by Medifast to be reasonable and
speak only as of the state on which such statements are made. We
undertake no obligation to update such statements to reflect events
or circumstances arising after such date, and we caution investors
not to place undue reliance on any such forward-looking statements.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those
described in the statements based on a number of factors, including
but not limited to the following: delays associated with closing
the sale; anticipated benefits of the sale; effectiveness of our
management strategies and decisions; and other risk factors
described from time to time in the Medifast' s Form 10-K,
(including all amendments to that report) filed with the U.S.
Securities and Exchange Commission.
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SOURCE Medifast, Inc.