Jenny Craig Inc.
agreed to be taken private for $5.30 a share in a leveraged buyout led by Deutsche Bank and ACI Capital.
The transaction is worth $115 million and is being financed in part with senior debt provided by Ableco Finance and debt and equity from Deutsche Bank's private equity arm and ACI Capital. The company's founders, Sid and Jenny Craig, will contribute $4 million worth of stock to the acquisition vehicle and "remain involved" with the company.
The purchase price represents a 68% premium on Jenny Craig's closing price Friday of $3.15. The company trades on the over-the-counter bulletin board.
The Craigs and their affiliates agreed to vote their current holdings of about 67% of the company's stock in favor of the transaction, which is expected to close in the second quarter of 2002.
Jenny Craig has 652 weight-management centers in the U. S., Canada and elsewhere. During the four quarters ended Sept. 30, 2001, it had $291 million in sales.
Jenny Craig will keep its headquarters in Southern California and the current management team will continue to operate the company. Kent Kreh, the former chief executive of Weight Watchers International, will be chairman.