US

Jamba settles proxy fight, agrees to add 2 new members to its board of directors

Fruit smoothie maker Jamba has settled a proxy fight, adding two new members to its board of directors.

The Emeryville, California, company's stock added 48 cents, or 3.2 percent, to $15.49 in morning trading Tuesday.

The company behind Jamba Juice stores said Tuesday that joining its board are James Pappas, a managing member of JCP Investment Management LLC, and Glenn Welling, founder and chief investment officer of Engaged Capital LLC.

Engaged Capital, one of Jamba's biggest investors, holds an 8.2 percent stake, while JCP's stake is about 2.3 percent.

Jamba will nominate Pappas and Welling as directors at its 2015 annual shareholders meeting and will not nominate one of its current board members, who it did not identify. Jamba's board is expected to have nine members, including eight that are independent, after the annual meeting is held.

JCP will withdraw its nomination of six candidates for Jamba's board, and JCP and Engaged Capital have agreed to vote their shares for Jamba's slate of directors.

Engaged Capital has been pushing for Jamba to franchise locations that the company owns, which Jamba has been doing of late.

"Jamba's commitment to transition to a franchise-focused company has the potential to create meaningful value for shareholders, and I look forward to being a part of the team that makes that happen," Welling said in a statement.