Focus Brands Inc. (“FBI”) and Jamba, Inc. (Nasdaq:JMBA)
(”Jamba”) today announced that the companies have entered into a
definitive merger agreement under which FBI will acquire Jamba for
$13.00 per share in cash, in a transaction valued at approximately
$200 million.
Statement by Steve DeSutter, Chief Executive Officer of Focus
Brands Inc."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.”
Statement by Dave Pace, Chief Executive Officer of Jamba,
Inc.“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,” said Dave Pace,
CEO of Jamba, Inc. “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.”
Transaction DetailsUnder the terms of the agreement, a
subsidiary of FBI will commence a tender offer to purchase all of
the outstanding shares of Jamba common stock for $13.00 per share
in cash. 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, FBI 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 FBI 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 FBI 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 that focuses on investing in
franchised and multi-unit businesses in the restaurant, retail and
other consumer sectors.
Certain funds advised by Engaged Capital, LLC and Indus Capital
Partners, LLC, which collectively own approximately 27% of the
outstanding shares of Jamba, have entered into agreements to tender
their shares in the tender offer.
AdvisorsNorth Point Advisors LLC is serving as financial
advisor and DLA Piper LLP is serving as legal counsel to Jamba.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as
legal counsel to FBI.
About Focus Brands Inc.Atlanta-based Focus Brands Inc. is
a leading developer of global multi-channel foodservice brands.
FBI, through its affiliate brands, is the franchisor and operator
of more than 5,000 restaurants, cafes, ice cream shoppes and
bakeries in the United States, the District of Columbia, Puerto
Rico and over 50 foreign countries under the brand names Carvel®,
Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill®, Auntie Anne’s®
and McAlister’s Deli®, as well as Seattle’s Best Coffee® on certain
military bases and in certain international markets. Please visit
www.focusbrands.com to learn more.
About Jamba, Inc.Jamba, Inc. (Nasdaq:JMBA) through
its wholly-owned subsidiary, Jamba Juice Company, is a global
healthy lifestyle brand that inspires and simplifies healthful
living through freshly blended whole fruit and vegetable smoothies,
bowls, juices, cold-pressed shots, boosts, snacks, and meal
replacements. Jamba's blends are made with premium ingredients
free of artificial flavors and preservatives so guests can feel
their best and blend the most into life. Jamba Juice® has
more than 800 locations worldwide. For more information,
visit www.jambajuice.com.
About RoarkRoark focuses on investing in franchised and
multi-unit businesses in the retail, restaurant, consumer and
business services sectors. Since inception, affiliates of Roark
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. For more information,
please visit www.roarkcapital.com.
Notice to InvestorsThe tender offer described in this
press release has not yet commenced. This press release is not a
recommendation, an offer to purchase or a solicitation of an offer
to sell shares of Jamba stock. At the time the tender offer is
commenced, Jay Merger Sub, Inc., a wholly owned subsidiary of FBI
(“Merger Sub”), will file a tender offer statement and related
exhibits with the U.S. Securities and Exchange Commission (the
“SEC”) and Jamba will file a solicitation/recommendation statement
with respect to the tender offer. Investors and stockholders of
Jamba are strongly advised to read the tender offer statement
(including the related exhibits) and the
solicitation/recommendation statement, as they may be amended from
time to time, when they become available, because they will contain
important information that stockholders should consider before
making any decision regarding tendering their shares. The tender
offer statement (including the related exhibits) and the
solicitation/recommendation statement will be available at no
charge on the SEC’s website at www.sec.gov. In addition, the tender
offer statement and other documents that Merger Sub files with the
SEC will be made available to all stockholders of Jamba free of
charge from the information agent for the tender offer. The
solicitation/recommendation statement and the other documents filed
by Jamba with the SEC will be made available to all stockholders of
Jamba free of charge at www.ir.jambajuice.com.
Cautionary Note Regarding Forward-Looking
StatementsCertain forward-looking statements made in this press
release, including any statements as to future results of
operations and financial projections, may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements include, among other things, statements
about the potential benefits of the proposed transaction; the
prospective performance and outlook of the surviving company’s
business, performance and opportunities; the ability of the parties
to complete the proposed transaction and the expected timing of
completion of the proposed transaction; as well as any assumptions
underlying any of the foregoing. Forward-looking statements are
based on management’s current expectations, beliefs, estimates,
projections and assumptions. As such, forward-looking statements
are not guarantees of future performance and involve inherent risks
and uncertainties that are difficult to predict. As a result,
actual future results and trends may differ materially from what is
forecast in forward-looking statements. The following are some of
the factors that could cause actual future results to differ
materially from those expressed in any forward-looking statements:
(i) uncertainties as to the timing of the tender offer; (ii) the
risk that the proposed transaction may not be completed in a timely
manner or at all; (iii) the possibility that competing offers or
acquisition proposals for Jamba will be made; (iv) uncertainty
surrounding how many of Jamba’s stockholders will tender their
shares in the tender offer; (v) the possibility that any or all of
the various conditions to the consummation of the tender offer may
not be satisfied or waived, including the failure to receive any
required regulatory approvals from any applicable governmental
entities; (vi) the possibility that prior to the completion of the
transactions contemplated by the merger agreement, Jamba’s business
may experience significant disruptions due to transaction-related
uncertainty; (vii) the occurrence of any event, change or other
circumstance that could give rise to the termination of the merger
agreement; (viii) the risk that stockholder litigation in
connection with the proposed transaction may result in significant
costs of defense, indemnification and liability; and (ix) other
factors as set forth from time to time in Jamba’s filings with the
SEC, including its Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q, as well as the tender offer statement,
solicitation/recommendation statement and other tender offer
documents that will be filed by FBI, Merger Sub and Jamba, as
applicable. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
Focus Brands, Merger Sub and Jamba do not undertake any obligation
to update or publicly release any revisions to any forward-looking
statements to reflect events, circumstances or changes in
expectations after the date of this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20180802005377/en/
Focus BrandsLucas Bravo, 404-978-4755Vice President,
Finance and TreasuryLBravo@focusbrands.comorJambaTodd
Wilson, 469-294-9749Vice President, Finance and Investor
Relationsinvestors@jambajuice.com
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