Chicago based Levy Acquisition has agreed to buy Mexican-American fast-food chain Del Taco, in a $500m deal.
The blank-check acquisition firm Levy Acquisition, which is controlled by restaurateur Larry Levy, will now change its name to Del Taco Restaurants.
Under a two-step transaction process, Levy's family and other investors will first invest $120m in Del Taco and acquire 46% stake in the company. In the second step, a subsidiary of LAC will merge into Del Taco.
The merger process is expected to be completed in June this year.
Levy Acquisition chairman and CEO Larry Levy said: "We have been searching to acquire a growing restaurant brand for over a year and when we focused on the iconic Del Taco, we knew it was perfect."
Based in Lake Forest, Del Taco currently operates 547 restaurants across 16 states. The company reported $656.1m in sales last year.
The fast-food chain offers classic Mexican-inspired dishes such as tacos, burritos, quesadillas and nachos along with traditional American favorites including hamburgers and crinkle-cut fries.
Image: Del Taco in Denton, Texas, US. Photo: courtesy of Jonesdr77
