Del Taco completes merger, goes public

Chicago restaurateur Larry Levy completed his purchase of the Del Taco Mexican chain, announcing plans to compete with other major fast-casual chains by accelerating location growth nationwide.

Shareholders of Chicago-based Levy Acquisition Corp. on Tuesday approved the merger with Del Taco Holdings, which operates more than 550 restaurants in 16 states. The combined company, which will be traded publicly, is named Del Taco Restaurants. 

“What I love about (Del Taco) is it really falls nicely between Chipotle and Taco Bell in terms of freshness and the mechanized kitchen,” Levy told the Orange County Register. “We plan to make it a nationwide brand.”

The acquisition, first announced in March, is valued at $500 million.

As part of the deal, the Levy family and other investors purchased $120 million of Del Taco common stock, the proceeds from which were used to repay $111.2 million in high-interest debt. In addition, Del Taco will repay $68.6 million toward debts in an effort to free up the chain for growth and greater financial flexibility. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Starbucks, and a lot of other brands, leaned too far into takeout

The Bottom Line: Some brands went too far in their bid to cater to takeout customers. Consumers still want great in-store experiences, even if they don’t always use them.

Financing

The market for restaurant chains is heating up

The Bottom Line: A pair of firms are reportedly making a play for Papa Johns, and Bojangles is apparently on the market again. Buyers appear eager to take on certain types of restaurant chains.

Food

An eye on food waste inspires a chicken salad that becomes a best seller

Behind the Menu: Millers All Day repurposed leftover breakfast waffles into croutons to create a new signature—the Chicken and Waffle Salad. It’s a unique spin on Southern comfort.

Trending

More from our partners