LAKE FOREST (CNS) - San Diego-based fast-food giant Jack in the Box announced an agreement today to acquire rival Del Taco, based in Lake Forest, in a $575 million deal.
``We are thrilled to welcome Del Taco, a beloved brand and proven regional winner, to the Jack in the Box family,'' Darin Harris, CEO of Jack in the Box, said in a statement. ``This is a natural combination of two like- minded, challenger brands with outstanding growth opportunities. 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.
``This acquisition fits squarely in our strategic pillars and helps us create new opportunities for the franchisees, team members and guests of both brands.''
Together, Jack in the Box and Del Taco operate more than 2,800 eateries in 25 states. Del Taco has about 600 fast-food outlets in 16 states.
``We are excited to have found a partner in Jack in the Box that shares our vision for the future and has the (fast-food) expertise to further accelerate Del Taco's growth,'' Del Taco President John D. Cappasola Jr. said in a statement. ``In recent years, we have uniquely positioned Del Taco as a leader in the growing Mexican (fast-food) category, expanded our digital capabilities to enhance consumer convenience and focused on growing the brand through franchising, resulting in eight consecutive years of franchise same store sales growth and an accelerating new unit pipeline.''
The deal is expected to close in the first quarter of 2022.
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