Jack in the Box announced Monday that it would acquire Del Taco for approximately $575 million, excluding existing debt.
Del Taco has about 600 restaurants across 16 states. It's the second-largest Mexican-style fast-food restaurant in the country.
"Jack in the Box and Del Taco will have more than 2,800 restaurants spanning 25 states with similar guest profiles, menu offerings and company cultures – both priding themselves on serving guests with unique variety, quality, innovation and value," officials with the San Diego-based company said in a press release.
Jack in the Box believes Del Taco will be a good fit due to its business model. The company says 99% of its stores have a drive-thru, "helping to achieve strong off-premise sales."
Jack in the Box expects to close the deal by March of 2022.
Jack in the Box previously owned the Qdoba restaurant chain.
According to the Associated Press, the chain of Mexican restaurants was a sore spot on Jack in the Box’s overall business due to poor sales.