As part of an ongoing refranchising effort, the parent of the Jamba Juice smoothie chain said on Wednesday it had agreed to sell 41 corporate stores to franchisees, reflecting the company’s largest transaction since the initiative began last year.
Terms of the deal, which is expected to close in November, were not disclosed. Jamba’s stock jumped 7.79 percent to $2.49 per share following the announcement, marking the biggest gain on NRN’s Restaurant Stock Index Wednesday.
The purchase agreement included the sale of 41 stores in the Midwest, mostly in the Chicago and Minneapolis markets. The proposed buyers are J.J. Maa Inc., and J.J. Mata Inc., whose principals are Zeena Patel, Anand Patel, Amrit Patel and Mafatlal Patel.
Once completed, the deal will move Jamba Juice closer to its goal of selling 150 stores by the end of the year. In September, the company said it had reached 80 percent of its goal with the refranchising of 102 completed at that time.
In a statement from Emeryville, Calif.-based Jamba Inc., the Patels are described as being veteran business owners and operators with experience that includes quick-service and traditional restaurants, as well as retail grocery, ethnic and specialty food importing and manufacturing, and homeopathic health and wellness services.
Under the agreement, the Patels plan to develop an additional 20 Jamba Juice locations over the next six years.
“The team has done outstanding work to substantially complete the refranchising program and this purchase agreement, the largest to date with 41 stores, is a significant achievement,” said James White, chairman, president and chief executive of Jamba Juice. “I am exceptionally impressed with the Patel family and their outstanding track record of success as business owners and entrepreneurs. Their investment in the Jamba brand speaks strongly to their belief in our business proposition and we look forward to working together to grow this market.”
As of July 13, the end of the company’s most recent quarter, Jamba Juice had 743 locations, including 432 that are company owned.
Contact Lisa Jennings at [email protected].
