JACK - Jack in the Box to buy Del Taco in a deal valued at about $575 million in cash

Per the terms, Jack in the Box (NASDAQ:JACK) will acquire Del Taco (NASDAQ:TACO) for $12.51 per share in cash in a transaction valued at approximately $575 million, including existing debt. The offer price implies a premium of ~66% to the closing price of TACO on December 3. Jack in the Box (JACK) estimates that the transaction values Del Taco (TACO) at a synergy adjusted multiple of approximately 7.6x trailing twelve months Adjusted EBITDA. The company expects the transaction to be mid-single-digit accretive to EPS excluding transaction expenses in the first year and meaningfully accretive beginning in the second-year post synergies. The company expects to achieve synergies primarily through procurement and supply chain savings, technology and digital efficiencies, and other financial benefits, and knowledge-sharing initiatives. Jack in the Box (JACK) intends to finance the acquisition by issuing additional securitization notes from its existing program with a financing commitment provided by BofA Securities.

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Jack in the Box to buy Del Taco in a deal valued at about $575 million in cash