March 14, 2006--Jamba Juice, a privately owned chain of smoothie outlets and former Inc. 500 company, was purchased for $265 million by Services Acquisitions Corp. International, company officials announced Monday.
The purchase, spearheaded by former Blockbuster Entertainment CEO Steve Berrard, includes plans to expand the San Francisco-based chain, which already has 532 stores in 26 states. Founded in 1990, the company posted $345 million in sales last year.
Paul Clayton, who will stay on as Jamba's president and CEO, called the deal an "opportunity to expand our footprint and extend our brand into additional markets" in a statement issued Monday.
Pending shareholder approval, Berrard's Florida-based Service Acquisitions, which went public in 2005 with the intent of acquiring an operating company, will change its name to Jamba Inc. A new board of directors will combine officials from both companies.
"When we looked at Jamba Juice, we saw a unique lifestyle brand with strong management, category dominance and solid store level economics," Berrard said, citing the potential for significant growth.