Qdoba sold for $305M
Jack in the Box Inc. has sold Qdoba Restaurant Corp. for approximately $305 million to Apollo Global Management, according to a company press release. Qdoba operates and franchises more than 700 restaurants in the U.S. and Canada.
In connection with the sale, Jack in the Box will make a prepayment of $260 million to retire outstanding debt under its term loan, as required by the terms of its credit facility, according to the release.
"We wish the Qdoba brand and its leadership team and franchisees all the best," Lenny Comma, chairman and CEO of Jack in the Box, said in the release. "Completing the sale of Qdoba marks an important milestone in the actions we're taking to enhance shareholder value while creating an asset-light business model that is less capital intensive."
Lance Milken, a senior partner at Apollo, said his team is excited to be working alongside Qdoba's "outstanding management team, talented employees and dedicated franchise partners. We look forward to continuing Qdoba's growth as a leading fast-casual restaurant brand."
When Jack in the Box acquired Qdoba in 2003, it had 85 locations in 16 states, with $65 million in system-wide sales. Today, Qdoba is the second largest fast-casual Mexican food brand in the U.S., with more than 700 locations in 47 states, the District of Columbia and Canada, and system-wide sales of more than $820 million in fiscal 2017.
Apollo is a global alternative investment manager with domestic offices in Bethesda, Maryland; Chicago; Houston; Los Angeles; and New York; and international offices in Delhi; Frankfurt; Hong Kong; London; Luxembourg; Madrid; Mumbai; Shanghai; Singapore; and Toronto.The company had assets under management of about $249 billion as of Dec.31.
Topics: Operations Management