California-based rival chains join forces: Jack in the Box buys Del Taco in $575M deal

Burger chain Jack in the Box is buying Del Taco, the second-largest Mexican fast food chain in the U.S. behind Taco Bell. The deal is worth $575 million, including existing debt, according to a Monday news release.

That price works out to $12.51 per share for the cash transaction, according to the news release. The merger of the competitors will result in a total of more than 2,800 restaurants in more than 25 states.

“We are thrilled to welcome Del Taco, a beloved brand and proven regional winner, to the Jack in the Box family,” Darin Harris, chief executive 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.”

Both chains are headquartered in California.

The deal is expected to close in the first calendar quarter of 2022, according to the news release. Both restaurants have several locations in the Sacramento area.

This story was originally published December 6, 2021 at 2:31 PM with the headline "California-based rival chains join forces: Jack in the Box buys Del Taco in $575M deal."