What was the total aggregate purchase consideration, net of $12,068 cash acquired, for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
r-related transaction costs that were paid at the Closing Date by the Company.
Purchase price allocation — The final allocation of the purchase consideration was as follows (in thousands):
| Total aggregate purchase consideration, net of $12,068 cash acquired $ | 581,241 |
|---|---|
| Assets: | |
| Accounts and other receivables | 4,583 |
| Inventories | 3,233 |
| Prepaid expenses | 2,950 |
| Other current assets | 105 |
| Property and equipment | 145,032 |
| Operating lease right-of-use assets | 350,289 |
| Intangible assets | 12,371 |
| Trademarks | 283,500 |
| Other assets | 5,128 |
| Liabilities: | |
| Current maturities of long-term debt | 22 |
| Current operating lease liabilities | 21,991 |
| Accounts payable | 18,808 |
| Accrued liabilities | 112,579 |
| Long-term debt, net of current maturities | 349 |
| Long-term operating lease liabilities, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total aggregate purchase consideration, net of $12,068 cash acquired, was $581,241. This figure represents the final valuation of the Del Taco acquisition by Jack in the Box, taking into account all assets, liabilities, and goodwill involved in the transaction. The purchase price allocation was based on fair value estimates determined using significant unobservable inputs (Level 3).
Understanding the purchase consideration is crucial for prospective franchisees as it reflects the overall financial health and valuation of the Del Taco brand. The assets acquired include accounts receivables, inventories, prepaid expenses, property and equipment, operating lease right-of-use assets, intangible assets, and trademarks. The liabilities include current maturities of long-term debt, current operating lease liabilities, accounts payable, accrued liabilities, long-term debt, long-term operating lease liabilities, deferred tax liabilities and other long-term liabilities.
The net assets acquired, excluding goodwill, amounted to $261,519, while goodwill was valued at $319,722. Goodwill represents the intangible value associated with the Del Taco brand, including its market position and future growth potential. This purchase price allocation provides transparency into how Jack in the Box assessed the value of Del Taco during the acquisition, which can be useful for franchisees in evaluating the long-term prospects of the brand.
It is important to note that the purchase price allocation is based on estimates and assumptions made at the time of the acquisition. Actual results may vary depending on market conditions and other factors. Prospective franchisees should carefully review the financial statements and consult with their own financial advisors to assess the risks and opportunities associated with investing in a Del Taco franchise.