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ACI Capital, DB Capital Partners Complete Acquisition of Jenny Craig, Inc.
New York, N.Y. (May 14, 2002) - Jenny Craig, Inc. announced today that its pending acquisition by an investor group led by ACI Capital Co., Inc., a private investment firm, had been completed. DB Capital Partners, Inc. the private equity arm of Deutsche Bank, is ACI Capital's partner in the transaction. The investor group also includes Sid and Jenny Craig. The transaction was approved yesterday by Jenny Craig's shareholders at a special meeting. Based on the merger consideration of $5.30 price per share, the transaction is valued at approximately $115 million. As a result of the merger, Jenny Craig has become a private company.
Jenny Craig is one of the largest weight management firms worldwide with 652 centers in the United States, Canada and abroad. Founded in 1983, the Company offers a comprehensive weight management program that helps clients learn how to eat the foods they want, increase their energy level through simple activity and build more balance in their lives for optimal weight loss and well being. The program combines personal, one-on-one consultations at Jenny Craig Centres with nutritionally balanced menu plans. During the four quarters ended March 31, 2002, the Company generated $305 million in sales.
"Jenny and I are very pleased that the merger is completed and that Jenny Craig can now focus all of its energy on helping its clients lose and maintain their weight," said Sid Craig, who, with his wife, Jenny, founded the company in 1983. "The experienced investors at ACI Capital and DB Capital Partners bring a wealth of resources to the company and all of us are excited to work with them to continue growing this business. Moreover, the transaction is good news for our shareholders, clients and employees. Shareholders benefit by receiving a premium of 68 percent above the share price on January 25th, the day before the merger agreement was announced. Clients and employees will benefit from the resources the investors bring to the company."
Kevin Penn, a Managing Director of ACI Capital, stated, "We are very pleased that the Craigs have entrusted us with control of the business they so successfully built. Weight loss is a critical issue in America today, and Jenny Craig is a premier company in the large and growing weight loss industry. We are very excited to have the opportunity to make this investment." Added Robert Sharp, a Managing Director of DB Capital Partners, "Jenny Craig typifies our portfolio strategy of investing in growth-oriented companies that have leading market positions, strong brand equity, experienced management and a solid customer base. We are excited to be partnering with Jenny Craig's managers and employees as we work to build upon the company's recent success."
Kent Kreh, former Chief Executive Officer of Weight Watchers International, is joining Jenny Craig as Chairman of the Board. "I am honored to have the opportunity to join Jenny Craig," Kreh stated. "Jenny Craig provides a unique and valuable service to hundreds of thousands of women annually. Its team of experienced, committed counselors and its strong brand and market position make it well positioned to thrive in the coming years." Others joining the Board of Jenny Craig include Matthew Bronfman, a Managing Director of ACI Capital, and Richard E. Wenz, a Consulting Partner of DB Capital Partners and former President of Safety 1st. "This transaction is a great step forward for Jenny Craig," stated Wenz. "As a private company, Jenny Craig will have more flexibility in pursuing strategic opportunities, investing in its operations, and in recruiting and retaining the people it needs to be successful long-term." "Obesity is perhaps the number one health issue in America," added Bronfman. "Jenny Craig's personalized approach to weight loss and maintenance is the right solution for many people."
Ableco Finance provided senior financing for the transaction. Koffler & Company, an investment banking firm headquartered in Los Angeles, acted as financial advisor to Jenny Craig, and Houlihan Lokey acted as financial advisor to the Special Committee of Jenny Craig's Board of Directors. Jenny Craig was represented by Proskauer Rose LLP, the Special Committee by Latham & Watkins, ACI Capital by Weil, Gotshal & Manges LLP, and DB Capital Partners by Gibson, Dunn & Crutcher LLP.
About Jenny Craig
Founded in 1983, Jenny Craig, Inc. is one of the largest weight management service companies in the world. The Company offers a comprehensive weight management program that helps clients learn how to eat the foods they want, increase their energy level through simple activity, and build more balance in their lives for optimal weight loss and well-being. The program includes personal, one-on-one consultations at Jenny Craig Centres, with menu plans that are nutritionally balanced according to the recommendations of the USDA Food Guide Pyramid and the U.S. Dietary Guidelines. Jenny Craig Centres are located in the United States, Canada, Australia, New Zealand, and Puerto Rico. At December 31, 2001, the Company owned 542 Centres with an additional 110 Centres owned by franchisees, bringing the total number of Centres in operation to 652. For more information, please visit www.jennycraig.com.
About ACI Capital Co., Inc.
ACI Capital is a private investment firm with over 40 years of history leading middle-market management buyouts and growth capital investments across a broad spectrum of industries throughout North America. ACI Capital is an active partner with management in building the value of its companies. For more information, please visit www.acicapital.com.
About DB Capital Partners, Inc.
DB Capital Partners is the private equity arm of Deutsche Bank AG. With over 100 investment professionals operating out of offices in the Americas, Europe, Asia and Australia, DB Capital Partners is a leading manager of private equity assets. Drawing upon the substantial global resources of Deutsche Bank, DB Capital Partners invests in all manner of financial transactions globally including growth financings, recapitalizations, leveraged buyouts, mezzanine financings, venture investing and primary and secondary funds. For more information, please visit www.dbcapitalpartners.com.
About Deutsche Bank
With total assets of over 950 billion Euro and more than 92,500 employees, Deutsche Bank offers its clients unparalleled financial services throughout the world. It ranks among the leaders in asset management, capital markets, corporate finance, custody, cash management and private banking. Deutsche Bank is organized in two customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private Clients and Asset Management" (PCAM). The keys to the Bank's success remain constant: customer focus, the spirit of innovation, a broad range of product skills combined with technological power and financial strength delivered by highly skilled professionals. For more information, please visit www.deutsche-bank.com.
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