Cinnabon’s owner to buy Jamba Juice for $200M

Focus Brands is paying $13 per share for the 800-unit juice chain.

Focus Brands, the Atlanta-based operator of Moe’s Southwest Grill and Cinnabon, is adding to its collection of concepts after announcing an agreement Thursday to pay $200 million to buy the Texas-based Jamba Juice.

Focus is paying $13 per share for Jamba, which is 17% higher than the chain’s stock price at opening on Thursday, and the company’s highest level in three years.

The deal adds to the Focus’s stable of brands, which include concepts that operate more than 5,000 locations across the world, including the aforementioned Moe’s and Cinnabon, as well as Carvell, Schlotzsky’s, Auntie Anne’s and McAlister’s Deli.

Roark Capital, the private equity owner of Focus, also owns Arby’s, Buffalo Wild Wings, Corner Bakery Cafe, Carl’s Jr., Hardee’s, Jimmy John’s and other concepts.

In Jamba, Roark and Focus get a juice brand that had finally found its legs following a 2016 move from California to Frisco, Texas, in a bid for a more centralized location.

Jamba’s system sales neared $500 million in the U.S. last year, up 1% over the prior year, according to Technomic.

Jamba has “an extremely loyal customer base and strong franchise operators,” said Steve DeSutter, CEO of Focus, in a statement, and “is one of the category leaders in the fast-growing smoothie and juice category.”

Dave Pace, CEO of Jamba, said that the sale to Focus “will result in a positive outcome for our guests, our franchisees and our employees.”

“Over the last few years, we have worked hard to strengthen our foundation and reposition this iconic brand for the future,” Pace said in a statement. “Partnering with Focus Brands will allow us to build on this work and further accelerate the company’s growth.”

The deal is expected to close in the third quarter, and Focus Brands will use a combination of cash on hand and debt to fund the deal. Jamba will become a subsidiary of Focus Brands but will operate as an independent brand.

Engaged Capital and Indus Capital Partners, which together own 27% of Jamba shares, have agreed to the deal.


Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


Who's on your fantasy restaurant-management team?

Reality Check: Why bother with fantasy football when the ideal virtual C-suite is waiting to be picked? Here's my roster.


Veggie Grill evolves the menu to keep pace with plant-based trends

Behind the Menu: Since the fast casual’s start in 2006, many new meat and dairy alternatives have come to market and consumers’ health perceptions have changed. Veggie Grill has been forced to change too.


The Subway saga takes another turn

The Bottom Line: Just when we thought the massive deal was set to go through, the feds stepped in to have their say.


More from our partners