Focus Brands buying Jamba Juice for $200M

Focus Brands Inc. is acquiring Jamba Juice for $13 per share in cash in a transaction valued at $200 million, according to a company press release. 

"Benefiting from an extremely loyal customer base and strong franchise operators, Jamba Juice is one of the category leaders in the fast-growing smoothie and juice category," said Steve DeSutter, CEO of Focus Brands Inc. “We are excited to welcome Jamba Juice with such an iconic heritage into our family of well-known and highly loved 'fan favorite' brands."

Dave Pace, CEO of Jamba Juice, said he is happy about the agreement.  

"Over the last few years, we have worked hard to strengthen our foundation and reposition this iconic brand for the future," he said in the release. "Partnering with Focus Brands will allow us to build on this work and further accelerate the company’s growth."

The tender offer is subject to customary conditions, including antitrust clearance and the tender of a majority of the outstanding shares of Jamba common stock. Following successful completion of the tender offer, Focus Brands would acquire all remaining shares not tendered in the offer through a merger at the same price as in the tender offer. 

The transaction is expected to close during the third quarter of 2018 and will be funded by Focus Brands using cash on hand and available borrowing capacity under its existing credit facilities.

Following the close of the transaction, Jamba will be a privately-held subsidiary of Focus Brands and will continue to be operated as an independent brand.

Focus Brands is majority-owned by affiliates of Roark, an Atlanta-based private equity firm. The company and its affiliates have invested in 64 franchise/multi-unit brands, which collectively generate $32 billion in annual system revenues from 32,000 locations in 50 states and 81 countries,

Topics: Franchising & Growth

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