SAN DIEGO--(BUSINESS WIRE)--Mar. 21, 2018--
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
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.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180321005742/en/
Source: Jack in the Box Inc.
Jack in the Box Inc.
Carol DiRaimo, (858)
Brian Luscomb, (858) 571-2291