News

Jamba inks agreement to refranchise 100 locations in California

Jamba, Inc. has entered into an asset purchase agreement with Vitaligent LLC to refranchise 100 company-owned restaurants in the San Francisco, Sacramento and San Diego markets.

April 3, 2015

Jamba, Inc. has entered into an asset purchase agreement with Vitaligent LLC to refranchise 100 company-owned restaurants in the San Francisco, Sacramento and San Diego markets, the company announced.

Vitaligent, led by David A. Peacock, former President of InBev subsidiary, Anheuser-Busch, and Jamba franchise partner, will own 105 Jamba locations upon closing the transaction. Jamba will receive a purchase price of $36.0 million in cash under the agreement.

"We are excited to extend our relationship with Dave and his organization. The strength of their partnership group and our shared vision for growth in the Midwest and the West will significantly enhance our brand presence and future growth opportunities. Both organizations share a passion for the brand and a vision to simplify and inspire healthy living," stated James D. White chairman, president and CEO of Jamba, in a statement. "This is a significant step toward our achieving the Company's commitment to an asset light model and positions us well to reach our goal of generating $30 - $40 million of cumulative cash proceeds from refranchising in 2015. We remain focused on increasing shareholder value and will be using a portion of these proceeds to return capital to shareholders through stock repurchases."