Jack In The Box To Buy Del Taco Restaurants For $575M, At 66% Premium

Jack In The Box Inc JACK has agreed to acquire Del Taco Restaurants Inc TACO for $12.51 per share in cash in a deal valued at about $575 million.

• The deal price represents a premium of 66% over Del Taco's closing price of $7.53 a share on Friday. 
• Del Taco serves more than three million guests each week at approximately 600 restaurants across 16 states.
• Del Taco will operate as the wholly-owned subsidiary of Jack In The Box following the completion of the transaction.
• Jack In The Box expects the deal to be mid-single-digit accretive to EPS, excluding transaction expenses, in year one and meaningfully accretive beginning in year two, once full synergizes are realized.
• The transaction is expected to close in the first calendar quarter of 2022.
• Jack in the Box intends to finance the acquisition by issuing additional securitization notes from its existing program with a financing commitment provided by BofA Securities, Inc. It held $73.6 million in cash and equivalents as of September 30, 2021.
• Price Action: JACK shares closed higher by 0.95% at $84 on Friday, while TACO traded higher by 64.67% to $12.40 in pre-market on the last check Monday.