What was the total aggregate purchase consideration for Del Taco?
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 FDD, the total aggregate purchase consideration for Del Taco was $593.3 million. This figure represents the overall value Jack in the Box paid to acquire Del Taco. The acquisition occurred on March 8, 2022, when Jack in the Box acquired 100% of Del Taco's outstanding equity interest for cash, according to the terms and conditions of the Merger Agreement dated December 5, 2021. Each share of Del Taco common stock was converted into the right to receive $12.51 in cash.
Several factors contributed to the total purchase consideration. This included cash paid to settle Del Taco's existing debt and $7.1 million of seller transaction costs funded by Jack in the Box. The acquisition was part of Jack in the Box's strategy to expand and achieve greater growth. 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.
For a prospective franchisee, understanding the financial details of this acquisition provides context for the financial stability and strategic direction of Del Taco under Jack in the Box's ownership. The substantial investment made by Jack in the Box indicates a strong belief in Del Taco's potential and future growth prospects. This can be reassuring for franchisees, as it suggests that the parent company is committed to supporting and developing the Del Taco brand. However, franchisees should also be aware that such a large acquisition can lead to changes in operations, branding, and financial expectations, so it's important to stay informed about any strategic shifts.
Furthermore, the FDD states that the excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities is recorded as goodwill. The goodwill of $319.7 million arising from the acquisition was primarily attributable to the market position and future growth potential of Del Taco for both company-operated and franchised restaurants related to future store openings, expansion into new markets, and expected synergies. None of the goodwill resulting from the acquisition is deductible for tax purposes.