SAN DIEGO — Jack in the Box Inc. has reached an settlement to acquire Del Taco Restaurants, Inc. for $12.51 per share, or roughly $575 million. The transfer unites two manufacturers with complementary cultures, visitor profiles, working fashions and market alternatives, the firms stated.
Founded in Lake Forest, Calif., in 1964, Del Taco is the second largest Mexican quick-service restaurant chain in the United States with roughly 600 eating places throughout 16 states. San Diego-based Jack in the Box is one in all the nation’s largest hamburger chains with greater than 2,200 eating places in 21 states and Guam.
“We are thrilled to welcome Del Taco, a beloved brand and proven regional winner, to the Jack in the Box family,” stated Darin Harris, chief government officer of Jack in the Box. “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.
“Del Taco has a loyal, passionate guest base and a strong operating model, and we believe that we can leverage our infrastructure, experience refranchising, and development strategy to support Del Taco’s growth plans and expand Del Taco’s footprint.”
John D. Cappasola Jr., president and CEO of Del Taco, added, “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. 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.
“We expect this transaction will provide Del Taco with the scale, complementary capabilities and opportunity to become even stronger partners to our franchisees and support their ability to drive substantial growth in our core and emerging markets.”
Jack in the Box stated it expects the transaction to be mid-single-digit accretive to earnings per share, excluding transaction bills, in yr one. It is predicted to be meaningfully accretive starting in yr two as soon as full synergies are realized, the firm famous.
Additionally, the mixed firm is predicted to notice run-rate strategic and value synergies of roughly $15 million by the finish of fiscal 2023, Jack in the Box stated. The firm famous that the synergies are anticipated to be achieved primarily via procurement and provide chain financial savings, expertise and digital efficiencies and different monetary advantages, in addition to knowledge-sharing initiatives.