(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)
SAN FRANCISCO-Investment firm Services Acquisition Corp. International (SVI) is buying the 532-store Jamba Juice chain for $265 million. Executives at the publicly traded SVI say they plan to expand the chain in its current markets.
After the acquisition, SVI will change its name to Jamba, Inc. The chain's current management, including Paul Clayton, the company's president and chief executive officer, will remain intact.
"When we looked at Jamba Juice, we saw a unique lifestyle brand, with strong management, category dominance and solid store level economics," says Steve Berrard, SVI's chairman, in a statement. "With a long-established operating history, and an excellent opportunity for organic growth, we believe the opportunity for Jamba Juice is tremendous."
To fund the deal, various institutional investors are buying 27.4 million shares of SVI common stock at $7.50 per share in a private placement, totaling $198 million. That amount will be combined with $127 million in cash SVI holds in on a trust, part of which will also be used to grow the company.
Of Jamba Juice's total portfolio, 323 stores are company owned, while the rest are operated by franchisees. Sales for the 12 months ended Jan. 10 were $345 million, $230 million of that coming from the company-owned locations.
The first Jamba Juice, known for its natural fruit smoothies and other snacks, opened in 1990. The company's growth rate, according to executives, has been at 20% in each of the last three years.
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