SAN MATEO, Calif. -- Taco Bell, a subsidiary of PepsiCo, Inc., will acquire all Taco Charley, Inc., outstanding stock, the presidents of the companies announced Thursday.
Taco Bell will issue approximately $1,145,000 of PepsiCo capital stock and the related assumption of Taco Charley's liabilities of approximately $3.5 million.
The value of the transaction to Taco Charley's shareholders is about $1.625 a share.
Taco Charley owns 47 Mexican fast food restaurants in California, Nevada and Arizona.
As part of the transaction, Calny, Inc., the former parent of Taco Charley which holds 46 Taco Bell restaurants, will purchase equipment and franchise rights to six restaurants currently owned by Taco Charley. Calny will pay about $1,192,000 for the six restaurants, which will be converted to Taco Bells.
In addition, Taco Bell can require Calny to purchase equipment, leasehold and franchise rights to convert an additional 22 Taco Charleys to Taco Bells for $160,000 each.
The transaction has been approved by directors of Taco Charley, Calny, PepsiCo and Taco Bell. It is subject to the approval of Taco Charley shareholders.
