Jack in the Box has wrapped up the divestment of its quick service restaurant brand Del Taco Holdings to Yadav Enterprises in a deal valued at about $119m.
Del Taco has now formally begun operating under the ownership of Yadav Enterprises as part of the latter’s franchise portfolio.
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The definitive agreement for the deal was signed in October this year.
Yadav Enterprises CEO Anil Yadav said: “For more than five decades, Del Taco has been a beloved restaurant chain supported by loyal guests who have fuelled a special and unique culture that continues to set the brand apart.
“Our recent acquisition of the Del Taco brand aligns perfectly with our long-term growth vision, and we are excited to support the next Del Taco evolution, while honouring the amazing legacy that has defined the brand for more than a half-century.”
The chain, founded in 1964, offers a mix of Mexican‑inspired and American dishes and runs more than 600 outlets across 17 US states.
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By GlobalDataThe company will continue to be based at its existing headquarters in Lake Forest, California.
Jack in the Box said the sale represents progress in its “Jack on Track” programme, aimed at improving its balance sheet and moving further towards an asset-light operating structure.
On completion of the deal, Jack in the Box received roughly $109m in cash and a $10m 21‑day promissory note, bearing interest at 8% per annum.
The note is fully guaranteed by Yadav Enterprises founder and CEO Anil Yadav.
The final deal value may change based on post‑completion working capital calculations and other standard closing adjustments.
Jack in the Box CEO Lance Tucker 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.”
Yadav Enterprises now adds Del Taco to a portfolio that includes over 300 franchised restaurants across the country.
The group is already the largest franchisee for Jack in the Box, Denny’s and TGI Friday’s.
It also acts as franchisor for Taco Cabana and Nick The Greek.
BofA Securities was the sole financial adviser to Jack in the Box on the deal, with Sullivan & Cromwell providing legal advice.
On the buyer’s side, Yadav Enterprises was represented by its general counsel, Steven M. Kries, and received advisory support from Baker Tilly.
