US-based foodservice brands developer Focus Brands (FBI) has signed a merger agreement to acquire smoothie chain Jamba Juice for nearly $200m.
As per the agreement, FBI’s subsidiary will purchase all of the outstanding shares of Jamba’s common stock for $13 per share through a tender offer.
FBI will acquire all remaining shares not tendered in the offer through a merger at the same price as in the tender offer after the completion of the tender offer.
According to the company, the tender offer is subject to customary conditions, including antitrust clearance and the tender of a majority of the outstanding shares of Jamba’s common stock.
Focus Brands chief executive officer Steve DeSutter said: “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.
“We are excited to welcome Jamba Juice with such an iconic heritage into our family of well-known and highly loved fan favourite brands.”
FBI will fund the transaction through cash and available borrowing capacity under its existing credit facilities. It expects to close the transaction during the third quarter of this year.
Following the completion of the transaction, Jamba will continue to be operated as an independent brand and will become a privately-held subsidiary of FBI.
Jamba Juice chief executive officer Dave Pace said: “We are delighted to have reached this agreement with Focus Brands and are confident that it will result in a positive outcome for our guests, our franchisees and our employees.
“Over the last few years, we have worked hard to strengthen our foundation and reposition this iconic brand for the future. Partnering with Focus Brands will allow us to build on this work and further accelerate the company’s growth.”
Based in the US, Jamba Juice offers fruit and vegetable smoothies, bowls, juices, cold-pressed shots, boosts, snacks, and meal replacements across more than 800 locations globally.