Jack in the Box buys Del Taco in $575 million deal

Jack in the Box buys Del Taco in $575 million deal https://youtu.be/lHjrB5a3jhg Jack in the Box is buying Del Taco, the second-largest Mexican fast-food chain in the U.S., in a deal valued at roughly $575 million. The burger chain will pay $12.51 per share in cash for the acquisition. Del Taco stock closed Friday at $7.53 per share. Jack in the Box plans to finance the acquisition by issuing additional securitization notes. This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities, Jack in the Box CEO Darin Harris said in a statement. 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.Shares of Jack in the Box were up less than 1% in premarket trading. Jack in the Box"s stock has fallen 9% this year, giving it a market value of $1.82 billion. Del Taco shares surged nearly 65% to $12.36 per share in premarket trading, bringing its market value from $274 million to $450 million. Del Taco has a footprint of roughly 600 restaurants across 16 states, making it the second-largest Mexican fast-food chain by number of restaurants behind Yum Brands" Taco Bell. In its third quarter, it earned 11 cents per share, after adjustments, on revenue of $124.3 million. The combined company will have more than 2,800 locations across 25 states. The purchase is expected to close in the first three months of 2022.


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