California restaurant operator to buy Taco Cabana for $85M

San Antonio-based Taco Cabana will be sold to a large restaurant operator, its Dallas-based parent company announced July 1.

An affiliate of Fremont, California-based Yadav Enterprises Inc. entered into a stock purchase agreement with Taco Cabana parent Fiesta Restaurant Group Inc. (Nasdaq: FRGI) to buy the brand for $85 million in cash.

The transaction is expected to close in third quarter 2021. Proceeds will be used to repay Fiesta’s roughly $74.6 million in debt and $4.6 million in additional…