How much did Jack in the Box pay for Del Taco transaction costs?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
aco'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 Del Taco's 2025 Franchise Disclosure Document, Jack in the Box paid $7.1 million in transaction costs related to its acquisition of Del Taco. This figure represents the seller transaction costs funded directly by Jack in the Box as part of the overall purchase consideration. The total purchase consideration for Del Taco amounted to $593.3 million. This included cash paid to settle Del Taco's existing debt and the cash paid for transaction costs.
The acquisition of Del Taco by Jack in the Box was completed on March 8, 2022. As part of the transaction, each share of Del Taco common stock was converted into the right to receive $12.51 in cash, less any 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, and Del Taco entered into a new syndicated credit facility.
For a prospective Del Taco franchisee, understanding the financial details of the acquisition, including the transaction costs, provides context regarding the financial stability and investment made in the brand by its parent company, Jack in the Box. This can be an important factor in assessing the long-term viability and growth potential of the Del Taco franchise system.