Nestle is selling a large portion of its shareholdings in the Jenny Craig weight loss business. The buyer would be a US hedge fund firm North Castle Partners. The sale is to decrease the portfolio of the world's biggest food conglomerate.

Nestle announced Thursday that the sale would cover the North American and Oceania businesses of Jenny Craig for an undisclosed amount. It would retain its France business for Jenny Craig.

Last month, Reuters had reported Nestle's desire to sell its interest in Jenny Craig. The brand manufactures packaged food as well as operate weight loss centers in an effort to unload weak performing brands from its portfolio.

Nestle CEO Paul Bulcke had disclosed to investors of the drive to dispose some of the assets, though he did not identify which ones would be sold. What he did confirm was, "We want to be in business, not in agony."

Nestle purchased Jenny Craig back in 2006 from ACI Capital and MidOcean partners for USD600 million.