Jack In The Box To Sell Qdoba Restaurant To Apollo Global For About $305 Mln

(RTTNews) - Jack in the Box Inc. (JACK) said that it agreed to sell Qdoba Restaurant Corporation, a wholly owned subsidiary of the Company which operates and franchises more than 700 QDOBA MEXICAN EATS restaurants, to certain funds managed by affiliates of Apollo Global Management, LLC (APO). As per the terms of the agreement, the Apollo funds will purchase Qdoba for approximately $305 million in cash, subject to customary closing conditions and adjustments.

The transaction is expected to close by April 2018. The Company expects to use the net cash proceeds after tax and transaction costs to retire outstanding debt under its term loan, as required by the terms of its credit facility.