Jack In The Box To Buy Del Taco Restaurants For $575M, At 66% Premium

Author: Shivani Kumaresan | December 06, 2021 09:50am

Jack In The Box Inc (NASDAQ:JACK) has agreed to acquire Del Taco Restaurants Inc (NASDAQ:TACO) for $12.51 per share in cash in a deal valued at about $575 million.

The deal price represents a premium of 66% over Del Taco's closing price of $7.53 a share on Friday.
Del Taco serves more than three million guests each week at approximately 600 restaurants across 16 states.
Del Taco will operate as the wholly-owned subsidiary of Jack In The Box following the completion of the transaction.
Jack In The Box expects the deal to be mid-single-digit accretive to EPS, excluding transaction expenses, in year one and meaningfully accretive beginning in year two, once full synergizes are realized.
The transaction is expected to close in the first calendar quarter of 2022.
Jack in the Box intends to finance the acquisition by issuing additional securitization notes from its existing program with a financing commitment provided by BofA Securities, Inc. It held $73.6 million in cash and equivalents as of September 30, 2021.
Price Action: JACK shares closed higher by 0.95% at $84 on Friday, while TACO traded higher by 64.67% to $12.40 in pre-market on the last check Monday.

Posted In: JACK TACO