Jack in the Box Inc. is buying the second-largest Mexican quick-serve chain in the US in a $575M deal.
The San Diego-based burger chain has entered into an agreement to acquire Del Taco for $12.51 per share in cash and the purchase is expected to close in the first three months of 2022.
Founded in 1964, Del Taco operates some 600 restaurants, with 99 per cent of its locations featuring a drive-thru, helping to achieve strong off-premise sales and a diversified daypart mix. Jack in the Box operates more than 2,200 units. The combined company will have more than 2,800 restaurants spanning 25 states with similar guest profiles, menu offerings and company cultures.
“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. “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.”
