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General Atlantic to gain majority stake in Joe & The Juice

Private equity firm General Atlantic has reached an agreement to purchase a majority stake in food and beverage chain Joe & The Juice, valuing the company at approximately $641 million. General Atlantic, which previously held a minority position, is purchasing the stake of private equity firm Valedo Partners.

Yahoo Finance's Brooke DiPalma analyzes the details behind the deal, providing insights into Joe & The Juice's expansion efforts as it grows its global footprint, along with General Atlantic's strategy to boost its lifestyle brand portfolio.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

- We're also tracking this news here this morning. Private equity group, General Atlantic has reached a deal to acquire a majority stake in Joe & The Juice. The deal will value the food and beverage chain at about $641 million. Yahoo Finance's Brooke DiPalma joins us with the details here. Brooke, what do we know?

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BROOKE DIPALMA: Good morning. Well, General Atlantic was actually already a minority shareholder. Now, they reportedly agreed to buy that stake held by another private equity firm, bringing them to that majority stakeholder. Now, this will increase General Atlantic stake from 30%, to somewhere between the range of 80% to 90%. And with this, Joe & The Juice will have the ability to what they say, retire its debt, and fuel growth. Now, the company has been expanding rapidly in recent years.

They plan to expand internationally, even more so, they currently have about 360 stores globally. They also plan to grow digital sales. Right now digital sales make up 30% of global sales. They see potential to increase that to at least 50%. It came to the US market about seven years ago, but it was founded in 2002. And Joe & The Juice Has really been evolving into what they say is what they want to be rather, a lifestyle brand.

And if you take a look at General Atlantic's portfolio, they do include other brands that have this sort of lifestyle type of feel. Think a Gympass, Shein, StockX, Vox Media, BuzzFeed, Tory Burch, as well as European Wax Center. And in addition to that, it's important to note that as the US consumer specifically continues to be very close to digital ordering. They continue to evolve the way they order. This is a market that they're looking very closely at.

They reportedly were going to look to go into IPO a few years ago, but they decided to back down pre-pandemic. And so lots of growth, lots of momentum for this company, and definitely one to look out for.

- Yeah, and I can speak personally that a lot of their users, their customers, are very loyal customer base as well. Once you go in there, yep, it's hard not to go back.

BROOKE DIPALMA: Yeah. That's what they want.

- Extremely good.