Business
Jack in the Box Inc. Completes Sale of Del Taco Holdings Inc.
SAN DIEGO--(BUSINESS WIRE)-- Jack in the Box Inc. (NASDAQ: JACK) (the “Company”) today announced that it has completed the sale of Del Taco Holdings Inc.
About this update from Jack In The Box Inc.
[{"type":"text","content":" SAN DIEGO--(BUSINESS WIRE)--\nJack in the Box Inc. (NASDAQ: JACK) (the “Company”) today announced that it has completed the sale of Del Taco Holdings Inc. (“Del Taco”), to Yadav Enterprises Inc. (“Yadav”). The closing of this transaction is an important step in the Company’s “Jack on Track” plan to strengthen the Company’s balance sheet and accelerate its shift toward a simpler, asset-light business model.\n\n\nThe Company completed the sale to Yadav for approximately $119 million in consideration, subject to post-closing working capital and other adjustments. In connection with the closing, the Company received approximately $109 million of the consideration in cash and the remaining $10 million in the form of a 21-day promissory note, accruing interest at an 8% annual rate, fully guaranteed by Anil Yadav, founder and CEO of Yadav.\n\n\nLance Tucker, Chief Executive Officer of Jack in the Box Inc., said, “Our sale of Del Taco represents meaningful progress in simplifying our business model and reducing our debt. We remain committed to elevating the Jack in the Box brand and improving operational performance to drive sustainable, long-term growth and create value for our shareholders. We appreciate the Yadav team’s partnership during this transition and wish the Del Taco brand well in their next chapter.”\n\n\nBofA Securities Inc. served as exclusive financial advisor to the Company, and Sullivan & Cromwell LLP served as its legal counsel in connection with this transaction. Yadav Enterprises Inc. was represented in this transaction by its General Counsel Steven M. Kries and advised by Baker Tilly.\n\n\nAbout Jack in the Box Inc.\n\n\nJack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box®, one of the nation's largest hamburger chains with approximately 2,135 restaurants across 21 states.\n\n\nAbout Yadav Enterprises Inc.\n\n\nYadav Enterprises Inc. operates more than 310 franchise restaurants including Jack in the Box, Denny’s, and TGI Friday’s, and owns the Taco Cabana brand, a fast-casual, Tex-Mex restaurant chain consisting of 150 locations, Del Taco®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 575 restaurants across 18 states, and Nick the Greek, a fast-casual, Greek restaurant c...