What was the total aggregate purchase consideration for Del Taco, net of cash acquired?
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 for Del Taco, net of cash acquired, was $581,241 (in thousands). This figure represents the final allocation of the purchase consideration during the acquisition of Del Taco. This number is important because it provides insight into the overall financial investment made by Jack in the Box to acquire Del Taco, after accounting for any cash that was acquired as part of the transaction.
For a prospective Del Taco franchisee, understanding the purchase consideration can offer a broader context of the financial health and strategic decisions of the parent company. It demonstrates the value that Jack in the Box placed on the Del Taco brand, its assets, and its future potential. This can be reassuring for franchisees as it indicates a strong commitment from the parent company to support and grow the Del Taco brand.
It's also important to note that the purchase price allocation includes various components such as tangible assets, identifiable intangible assets, and assumed liabilities, with any excess recorded as goodwill. In this case, the goodwill amounted to $319.7 million, primarily attributed to Del Taco's market position and future growth prospects. This goodwill is not tax-deductible, which is a common factor in business acquisitions. The details of this allocation can give franchisees confidence in the long-term stability and strategic direction of Del Taco under its new ownership.