Tuesday, March 14, 2006

Jamba Juice Sold

Everyone's favorite smoothie joint, Jamba Juice, will be sold to Services Acquisition Corp for $265 million. Services Acquisition, run by Steven Berrard, the former chief of Blockbuster, will take over the privately held entity that reported $342 million in sales through its 532 locations. Services Acquisition is an interesting story. The Company went public as a "blank check" company in 2005. Basically, this means that they raised capital from the public markets to do a deal, although the deal they were going to do wasn't disclosed at the time of issuance (and it may not have even been known by Services at the time of the IPO). Needless to say, Services shareholders have responded favorably to the proposed deal.

I recall a Barron's article on Blank Check companies a few months back. It referred to some of the risks inherent to them. I'll try to dig it up from the archives and post it.

But at any rate, here is an article on the Jamba Juice deal.

The DealBook's view.

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