The deal is expected to close in April, and Jack in the Box told investors it will use the cash proceeds to retire debt.
Less capital-intensive business model
"For the past several months, we have worked closely with our financial advisors and evaluated various strategic alternatives with respect to Qdoba, including a sale or spin-off, as well as opportunities to refranchise company restaurants,” said Lenny Comma, Jack in the Box chief executive.
“Following the completion of this robust process, our Board of Directors has determined that the sale of Qdoba is the best alternative for enhancing shareholder value and is consistent with the company’s desire to transition to a less capital-intensive business model.”
Lance Milken, Apollo senior partner, meanwhile, said: “We are extremely excited to be acquiring Qdoba and look forward to working with the management team, employees and franchisees to continue building the Qdoba brand.
“We are firmly committed to Qdoba’s continued growth as a leading fast-casual restaurant operator.”
In Tuesday’s pre-market deals Jack in the Box shares climbed 2.9% to trade at US$103.25.