Jack in the Box buying Del Taco for a high price

Jack in the Box will acquire Del Taco as part of a new deal that aims to help the two West Coast-based companies grow. The deal, according to the summary of the acquisition of Del Taco, which was released on Monday, is valued at $ 575 million.

In the summary, Jack in the Box described its purchase, stating that the two brands have “similar challenger mindsets and business models that will translate into significant synergy potential.”

In response to news of the acquisition, shares of Del Taco surged Monday morning, jumping nearly 65% ​​to $ 12.41 per share, according to Forbes. On Friday, the outlet reported that the taco joint was priced at just $ 7.53 per share.

Jack in the Box is one of the nation’s largest burger chains, with more than 2,200 restaurants in 21 states, according to Forbes, who writes that Del Taco is the second-largest taco chain after Taco Bell with 600 restaurants in 16 states. .

The attached burger also expects $ 15 million in profits from the acquisition by the end of 2023, according to the summary. Del Taco shareholders will vote on the acquisition in February or March, with the deal expected to be finalized in the first quarter of next year, according to Jack in the Box.

Eleanor C. William