What was the total 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 Del Taco Franchise Disclosure Document, the total purchase consideration for Del Taco was $593.3 million. This figure represents the aggregate amount Jack in the Box paid to acquire 100% of Del Taco's outstanding equity interest on March 8, 2022. The acquisition was part of Jack in the Box's strategy to expand and achieve greater scale. Each share of Del Taco common stock was converted into the right to receive $12.51 in cash, less any applicable withholding taxes.
The purchase consideration included several components beyond the cash paid for the shares. Jack in the Box also repaid Del Taco's existing debt of $115.2 million related to a syndicated credit facility. Additionally, $7.1 million was allocated to seller transaction costs funded by Jack in the Box. These additional expenses, along with the cash paid to shareholders, contributed to the total purchase price.
For a prospective Del Taco franchisee, this information provides context regarding the financial investment made by Jack in the Box in acquiring the Del Taco brand. Understanding the scale of this acquisition can give franchisees insight into the resources and commitment behind the Del Taco brand. It also highlights the strategic importance of Del Taco within the Jack in the Box portfolio, which may influence future growth and development plans for the franchise system.