American hamburger chain Jack in the Box has sold its fast-casual brand Qdoba Restaurant to funds managed by affiliates of Apollo Global Management for nearly $305m in cash.

As part of a definitive agreement signed between both parties in December last year, Jack in the Box will also make a prepayment of $260m to retire outstanding debt under its term loan.

Jack in the Box chairman and chief executive officer Lenny Comma said: “We wish the Qdoba brand and its leadership team and franchisees all the best.

“Completing the sale of Qdoba marks an important milestone in the actions we’re taking to enhance shareholder value.”

“Completing the sale of Qdoba marks an important milestone in the actions we’re taking to enhance shareholder value while creating an asset-light business model that is less capital intensive.”

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Qdoba, which was acquired by Jack in the Box in 2003, currently has more than 700 locations in 47 states, the District of Columbia and Canada.

The second largest fast-casual Mexican food brand in the US reported system-wide sales of more than $820m in fiscal 2017.

Apollo senior partner Lance Milken said: “With the close of this acquisition, we are very excited to be working alongside Qdoba’s outstanding management team, talented employees, and dedicated franchise partners. We look forward to continuing Qdoba’s growth as a leading fast-casual restaurant brand.”

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More than 2,200 Jack in the Box restaurants are being operated in 21 states and Guam.