When did Jack in the Box Inc. acquire Del Taco Restaurants, Inc.?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. ("Del Taco") for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. Del Taco is a nationwide operator and franchisor of restaurants featuring fresh and fast Mexican and American inspired cuisines. Refer to Note 3, Business Combination, for further details.
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 the Box common stock. Other components of purchase consideration include cash paid to settle Del Taco's existing debt and $7.1 million of seller transaction costs funded by Jack in the Box.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Jack in the Box Inc. acquired Del Taco Restaurants, Inc. on March 8, 2022. The acquisition was made for cash, following the terms and conditions outlined in the Agreement and Plan of Merger dated December 5, 2021. This acquisition allowed Jack in the Box to expand its portfolio by adding Del Taco, a brand known for its fresh and fast Mexican and American-inspired cuisine.
The total purchase consideration for Del Taco was $593.3 million. Each share of Del Taco common stock was converted into the right to receive $12.51 in cash, excluding interest and applicable withholding taxes. Additionally, Del Taco's existing debt of $115.2 million related to a syndicated credit facility was repaid by Jack in the Box as part of the transaction. Del Taco then entered into a new syndicated credit facility.
For a prospective Del Taco franchisee, this acquisition signifies a change in ownership and potentially new strategic directions for the brand under Jack in the Box Inc. Understanding the financial implications and future plans resulting from this acquisition is crucial. The FDD indicates that the acquisition was part of Jack in the Box's strategy to achieve greater scale and accelerate growth, which could translate into new opportunities or requirements for franchisees.