Jamba, Inc. Reaches Agreement to Refranchise 100 Company-Owned Locations in California
Agreement Supports the Company’s Goal of Becoming an 80% Plus Franchise-to-Company-Owned Model
EMERYVILLE, Calif. - (BUSINESS WIRE) - Apr. 1, 2015 - Jamba, Inc. (NASDAQ:JMBA) announced today that it has entered into an asset purchase agreement with Vitaligent, LLC (“Vitaligent”) to refranchise 100 Company-owned restaurants in the San Francisco, Sacramento and San Diego markets. Vitaligent is led by David A. Peacock, former President of InBev subsidiary, Anheuser-Busch, and existing Jamba franchise partner in St. Louis, who, upon closing of the transaction, would own 105 Jamba locations. Under the terms of the agreement, Jamba® will receive a purchase price of $36.0 million in cash.
“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. “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.”
On behalf of the Vitaligent team, which includes Dean VandeKamp, a former partner at Ernest & Young, Mr. Peacock stated, "We are excited to expand our partnership with Jamba Juice. This world class brand is at the convergence of the health and well-being movement and trend toward convenience. We are confident that we can drive performance through a disciplined management approach and with a superior team in our stores."
Jamba remains on track to complete its accelerated refranchising program within the first half of 2015. Discussions are underway with interested parties to sell an additional 14 locations in California.
Founded in 1990, Jamba, Inc. is a leading restaurant retailer of better-for-you, specialty beverage and food offerings, which include great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot teas, and a variety of food items including hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads™, baked goods, and snacks. As of December 31, 2014, there were 862 Jamba Juice store locations globally. Jamba is a proud sponsor of “Team Up for a Healthy America” in the fight against childhood obesity and encourages fans to join the Team Up community of celebrities, athletes, and other leaders committed to getting kids active and involved at www.myhealthpledge.com. Fans of Jamba Juice can find out more about Jamba Juice's locations as well as specific offerings and promotions by visiting the Jamba Juice website at www.JambaJuice.com or by contacting Jamba's Guest Services team at 1-866-4R-FRUIT (473-7848).
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company’s management. Words such as “outlook”, “believes”, “expects”, “appears”, “may”, “will”, “should”, “anticipates”, or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.
SOURCE Jamba, Inc.
Dir. Corporate Communications