What was the cash amount each share of Del Taco common stock was converted into?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
on with the transaction, the Company repaid Del Taco's existing debt of $115.2 million related to a syndicated credit facility and Del Taco entered into a new syndicated credit facility.
The total purchase consideration for Del Taco was $593.3 million. Each share of Del Taco common stock issued and outstanding was converted into the right to receive $12.51 in cash without interest, less any applicable withholding taxes ("Merger Consideration"). Additionally, in connection with the transaction, each Del Taco equity award granted under Del Taco's equity compensation plans was either (i) converted into the right to receive Merger Consideration or (ii) converted into equity awards with respect to Jack in th
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, on March 8, 2022, Jack in the Box acquired Del Taco. As part of this acquisition, each share of Del Taco common stock was converted into the right to receive $12.51 in cash, without interest, but less any applicable withholding taxes. This cash payment is referred to as the "Merger Consideration."
This means that if an individual held shares of Del Taco common stock at the time of the acquisition, they received $12.51 for each share they owned. This amount represents the value Jack in the Box placed on each share of Del Taco at the time of the merger. The total purchase consideration for Del Taco was $593.3 million.
For a prospective Del Taco franchisee, this historical transaction provides insight into how the brand has been valued in the past. While it doesn't directly impact the operations of a franchise, it does show the financial significance of the Del Taco brand within the restaurant industry. It's important to note that this was a one-time event and doesn't reflect the ongoing value or potential profitability of a Del Taco franchise.