(KERO) — Jack in the Box to buy Del Taco for about $575 million, according to an announcement from the two companies. In the agreement, Jack in the Box will acquire Del Taco for $12.51 per share in cash, according to a press release.
Founded in 1964, Del Taco has about 600 restaurants across 16 states. With the sale Jack in the Box and Del Taco will have more than 2,800 restaurants spanning 25 states.
“We are thrilled to welcome Del Taco, a beloved brand and proven regional winner, to the Jack in the Box family,” said Darin Harris, CEO of Jack in the Box, in a statement.
“This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities. Together, Jack in the Box and Del Taco will benefit from a stronger financial model, gaining greater scale to invest in digital and technology capabilities, and unit growth for both brands.
"This acquisition fits squarely in our strategic pillars and helps us create new opportunities for the franchisees, team members and guests of both brands.”
"We are excited to have found a partner in Jack in the Box that shares our vision for the future and has the QSR expertise to further accelerate Del Taco’s growth," said John D. Cappasola Jr., president and CEO of Del Taco.
"In recent years, we have uniquely positioned Del Taco as a leader in the growing Mexican QSR category, expanded our digital capabilities to enhance consumer convenience and focused on growing the brand through franchising, resulting in eight consecutive years of franchise same store sales growth and an accelerating new unit pipeline.”
According to a press release, the transaction is expected to close in the first calendar quarter of 2022 and is subject to customary closing conditions, including receipt of Del Taco shareholder approval and regulatory approvals.
