What does the $115,219 paid by Jack in the Box represent regarding Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
(CONTINUED)
Purchase consideration — The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data):
| Del Taco shares outstanding as of March 8, 2022 | 36,442 |
|---|---|
| Del Taco RSAs subject to accelerated vesting | 805 |
| Del Taco RSUs subject to accelerated vesting | 70 |
| Del Taco options subject to accelerated vesting | 292 |
| Total Del Taco shares outstanding | 37,610 |
| Merger Consideration (per Del Taco share) | $ 12.51 |
| Total cash consideration paid to selling shareholders | $ 470,500 |
| Del Taco transaction costs paid by Jack in the Box (1) | 7,141 |
| Del Taco closing in |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, $115,219 represents the Del Taco closing indebtedness settled by Jack in the Box. This figure is part of the overall merger consideration when Jack in the Box acquired Del Taco. The total cash consideration paid to selling shareholders was $470,500. The merger consideration per Del Taco share was $12.51. The total aggregate purchase consideration amounted to $593,309.
This means that when Jack in the Box acquired Del Taco, it not only paid the shareholders for their shares but also took responsibility for settling Del Taco's existing debts. This is a common practice in corporate acquisitions, where the acquiring company assumes the liabilities of the acquired company. For a prospective Del Taco franchisee, this historical financial transaction provides insight into the financial restructuring that occurred when Del Taco became part of the Jack in the Box organization.
It's important to note that this transaction occurred on March 8, 2022. As part of the transaction, Del Taco's existing debt of $115.2 million related to a syndicated credit facility was repaid, and Del Taco entered into a new syndicated credit facility. Additionally, Jack in the Box funded $7.1 million of seller transaction costs. These details provide a comprehensive view of the financial obligations Jack in the Box assumed during the acquisition of Del Taco.