Jack in the Box Inc. Completes Sale of Qdoba Restaurant Corporation
March 21 2018 - 10:35AM
Business Wire
Jack in the Box Inc. (NASDAQ: JACK) (the “Company”) today
announced that it has completed the sale of Qdoba Restaurant
Corporation (“Qdoba”) to an affiliate of certain funds managed by
affiliates of Apollo Global Management, LLC (together with its
consolidated subsidiaries, “Apollo”) (NYSE: APO) for approximately
$305 million in cash. Qdoba operates and franchises more than 700
QDOBA MEXICAN EATS® restaurants in the U.S. and Canada.
In connection with the sale, the Company will make a prepayment
of $260 million to retire outstanding debt under its term loan, as
required by the terms of its credit facility.
Lenny Comma, chairman and chief executive officer of Jack in the
Box Inc., said, “We wish the Qdoba brand and its leadership team
and franchisees all the best. 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, “With the close
of this acquisition, we are very 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.”
At the time the Company 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.
Advisors
Morgan Stanley & Co. LLC served as financial advisor and
Gibson, Dunn & Crutcher LLP served as legal counsel to the
Company in connection with this transaction. Apollo was advised by
Morgan, Lewis & Bockius LLP, Paul, Weiss, Rifkind, Wharton
& Garrison LLP, Deutsche Bank Securities Inc., and PJ
Solomon.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a
restaurant company that operates and franchises Jack in the Box®
restaurants, one of the nation’s largest hamburger chains, with
more than 2,200 restaurants in 21 states and Guam. For more
information on Jack in the Box, including franchising
opportunities, visit www.jackinthebox.com.
About Apollo Global Management, LLC
Apollo is a leading global alternative investment manager with
offices in New York, Los Angeles, Houston, Chicago, Bethesda,
Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi,
Singapore, Hong Kong and Shanghai. Apollo had assets under
management (AUM) of approximately $249 billion as of December 31,
2017, in Private Equity, Credit and Real Assets invested across a
core group of nine industries where Apollo has considerable
knowledge and resources. For more information about Apollo, please
visit www.agm.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the federal securities laws. Such statements are
subject to substantial risks and uncertainties. A variety of
factors could cause the Company’s actual results to differ
materially from those expressed in the forward-looking statements,
including the following: the success of new products and marketing
initiatives; the impact of competition, unemployment, trends in
consumer spending patterns and commodity costs; the Company's
ability to reduce G&A the Company's ability to execute its
refranchising strategy; the Company’s ability to achieve and manage
its planned growth, which is affected by the availability of a
sufficient number of suitable new restaurant sites, the performance
of new restaurants, and risks relating to expansion into new
markets; litigation risks; food safety incidents or negative
publicity impacting the reputations of the Company's brands; and
stock market volatility. These and other factors are discussed in
the Company’s annual report on Form 10-K and its periodic reports
on Form 10-Q filed with the Securities and Exchange Commission
which are available online at http://investors.jackinthebox.com or
in hard copy upon request. The Company undertakes no obligation to
update or revise any forward-looking statement, whether as the
result of new information or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180321005742/en/
Jack in the Box Inc.Investor Contact:Carol DiRaimo, (858)
571-2407orMedia Contact:Brian Luscomb, (858) 571-2291
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