Source: OCRegister.com

Apollo Global Management is getting into the Mexican food business. The private equity firm, run by co-founder Leon Black, agreed to buy the struggling Qdoba chain from Jack in the Box Inc. for about $305 million in cash. Apollo is taking over a business that has posted declining same-store sales in three of the past four quarters. Jack in the Box has been weighing a sale of the chain, which has about 725 locations in the U.S., since May, when the company said that having two different business models — a Mexican chain and its burger-focused flagship business — could be weighing down its valuation. Jack in the Box gained as much as 4.4 percent to $104.75 in New York Tuesday. The stock had dropped 10 percent this year through Monday’s close. The company said it plans to use the net cash proceeds after tax and transaction costs to retire outstanding debt under its term loan. The deal is expected to close by April, the company said.