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Schlotzsky’s owner to acquire Jamba Juice parent for $200M

Atlanta-based Focus Brands Inc. , owner of Schlotzsky’s and other brands, is acquiring Frisco-based Jamba Inc. (Nasdaq:JMBA) in a deal valued at approximately $200 million.

“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.”

The transaction is expected to close during the third quarter of 2018 and will be funded by Focus 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 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 percent of the outstanding shares of Jamba, have entered into agreements to tender their shares in the tender offer.

North 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.

Focus is a developer of global multi-channel foodservice brands and, 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.

Jamba Juice has more than 800 locations worldwide. For more information, visit www.jambajuice.com.

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