Jack in the Box is buying rival Del Taco

By Richard Clough | Bloomberg

Jack successful the Box Inc. agreed to bargain Del Taco Restaurants Inc., marrying the offbeat concatenation with a fast-food rival besides fashionable with late-night diners.

The burger edifice volition wage $12.51 a stock successful currency for Del Taco, a Mexican-food marque concentrated mostly successful the southwestern U.S., representing a 66% premium implicit the closing terms connected Dec. 3. The full transaction is valued astatine $575 million, including existing debt, according to a connection Monday.

The woody expands the scope of 2 chains toiling mostly successful the shadows of larger rivals specified arsenic McDonald’s Corp. and Yum! Brands Inc.’s Taco Bell. Jack successful the Box, which has embraced an outsider representation and offered quirky promotions including a cannabis-themed $4.20 meal, already offers inexpensive tacos connected its menu.

“This is simply a earthy operation of 2 like-minded, challenger brands with outstanding maturation opportunities,” Darin Harris, Jack successful the Box’s main enforcement officer, said successful the statement.

Del Taco shares soared 65% to $12.40 arsenic of 8:35 a.m. earlier regular trading successful New York. Jack successful the Box was small changed with minimal premarket trades.

The woody is expected to adjacent successful the archetypal quarter.