How much is a big brand worth? Chicago restaurateur Larry Levy, who is in advanced talks to acquire Del Taco, a US fast food chain specialising in Mexican cuisine, is about to find out.
Using his company Levy Acquisition Corp, known for its blank cheque acquisitions, Levy is negotiating as much as $500 million including debt for the 1964 brand with 560 units across 16 US states that serves more than three million customers per week.
Del Taco is presently owned by a consortium of private equity firms that include Goldman Sachs and is one of a number of restaurant chains trying to sell themselves or go public as market valuations for the sector continue to hold strong.
Levy is the co-founder of Levy Restaurants, which operate concession stands, and owns Chicago restaurant Spiaggia, which is regarded is one of President Obama’s favourite restaurants.