Jack in the Box is Buying Rival Del Taco
(Bloomberg) -- Jack in the Box Inc. agreed to buy Del Taco Restaurants Inc., marrying the offbeat chain with a fast-food competitor also popular with late-night diners. The burger chain's shares slumped on the news.
Jack in the Box will pay $12.51 a share in cash for Del Taco, a Mexican-inspired food brand concentrated largely in the southwestern U.S., representing a 66% premium over the closing price on Dec. 3. The total transaction is valued at $575 million, including existing debt, according to a statement Monday.
The deal expands the reach of two chains toiling largely in the shadows of larger rivals such as McDonald's Corp. and Yum! Brands Inc.'s Taco Bell. Jack in the Box, which has embraced an outsider image and offered quirky promotions including a cannabis-themed $4.20 meal, already offers cheap tacos on its menu.
“This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities,” Darin Harris, Jack in the Box's chief executive officer, said in the statement.
Del Taco shares soared 65% to $12.39 at 9:41 a.m. in New York. Jack in the Box fell as much as 7.3% -- the biggest intraday decline since September of 2020.
The deal is expected to close in the first quarter. Jack in the Box will finance the deal through the issuance of notes under an existing program. It has received a financing commitment provided by BofA Securities.
BofA Securities is serving as financial adviser to Jack in the Box and Gibson, Dunn & Crutcher LLP is serving as legal adviser. For Del Taco, Piper Sandler & Co. is serving as financial adviser and McDermott Will & Emery LLP is serving as legal adviser.
©2021 Bloomberg L.P.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
