The burger chain will own the Mexican food chain in entirety.
Yesterday, fast food chain Jack in the Box announced that had inked a deal with Del Taco, the second-largest Mexican fast food chain in the United States, to buy them out in entirety. The price for this sizable acquisition is set at about $575 million, with Jack in the Box paying about $12.51 per share of Del Taco stock.
“This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities,” Jack in the Box CEO Darin Harris said in a statement. “Together, Jack in the Box and Del Taco will benefit from a stronger financial model, gaining greater scale to invest in digital and technology capabilities, and unit growth for both brands.”
Del Taco operates about 600 locations across the United States, making it the second most ubiquitous Mexican fast food chain in the country, running behind only Taco Bell. Combining all of Jack in the Box’s locations with all of Del Taco’s locations totals to over 2,800 locations across half of the United States. The deal is expected to be finalized in the early months of 2022.
With the help of Del Taco, Jack in the Box is hoping to raise an additional $15 million in profit by the end of 2023. Jack in the Box hopes that pooling resources with Del Taco will also help to ease costs incurred from things like shipping and training.
