Tivity

The large Tivity Health investor who a year ago negotiated a seat on the board of the Franklin fitness and nutrition company has resigned his seat, saying he is satisfied with the progress made in recent months.

Dan Tully resigned Tuesday less than 13 months after being named to the board per an agreement with Tivity that gives Tully’s firm, Altaris Capital Partners, and its affiliates the right to be on the board as long as they own 5 percent of Tivity. The Altaris group owns about 9.4 percent of Tivity’s shares, which were up 5 percent Wednesday (Ticker: TVTY) and have more than octupled from the March lows and are now up slightly year over year.
 
The firm — which can build its stake to 13 percent — still has the right to appoint someone to the Tivity board but a Tivity spokeswoman said it has given no indication that it plans to do so.
 
“The company has made significant changes, including new leadership of the company and the board," Tully said in a statement. "I have confidence that the direction the company is taking will provide value to all Tivity Health stakeholders."
 
Tully’s stamp of approval comes after a tumultuous year for Tivity, which in early 2019 completed its acquisition of Nutrisystem, a deal many investors met with skepticism: CEO Donato Tramuto left in February, two months after Nutrisystem boss Dawn Zier exited, and was replaced by longtime Walgreens executive Richard Ashworth. The company also has written down the value of Nutrisystem by hundreds of millions and recently said goodbye to health care group leader Steve Janicak.
 
“We appreciate and thank Dan for his level of engagement, thoughtful input and many contributions as a director,” Chairman Anthony Sanfilippo in the company’s statement.

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