Private equity firm Apollo Global Management will acquire Mexican restaurant chain Qdoba from Jack in the Box Inc. for $305M.
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The deal comes as Jack in the Box is focusing more on its franchise-based business model. Jack bought Qdoba in 2003 and has since expanded the restaurant from 85 locations in 16 states to 700 locations in 47 states, the Wall Street Journal reports. Additional financial information regarding the transaction has not been disclosed.
Qdoba sales have been on the decline in recent months, and in the last quarter sales dropped by approximately 4% at company-owned locations. About 47% of Qdoba restaurants are franchise-owned, according to the Journal.
Despite its weak performance, Qdoba remains one of the largest fast-food Mexican restaurant chains in the U.S., coming second only to Chipotle Mexican Grill.
The deal is expected to close by April 2018.
