Jack in the Box to acquire Del Taco for over $450 million
Reuters
Published Dec 06, 2021 08:25AM ET
(Reuters) - U.S. hamburger restaurant chain Jack in the Box Inc said on Monday it would buy Del Taco Restaurants (NASDAQ:TACO) Inc for $455.3 million, as it looks to expand its customer base and take advantage of the Mexican food chain's drive-thru foothold.
Under the deal, Jack in the Box will pay $12.51 in cash for each Del Taco share, which is a premium of over 66% to its closing price on Friday. The total value of the deal, including debt, is about $575 million.
Jack in the Box, which would now have over 2,800 restaurants spanning 25 states, said the deal would help the chain beef up its off-restaurant premise sales. About 99% of Del Taco restaurants feature a drive-thru.
San Diego, California-based Jack in the Box said it expects the deal to immediately add to its earnings, adding the combined company would realize about $15 million in savings by the end of fiscal 2023 through supply chain and digital efficiencies.
BofA Securities is serving as the financial adviser to Jack in the Box, while Piper Sandler & Co is advising Del Taco.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.