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New On The Block

• Jack in the Box (NASDAQ:JACK) is exploring strategic options for Del Taco, including a potential sale, just two years after acquiring it for $585 million. According to Bloomberg, the fast-food chain could fetch up to $200 million. The company is working with Bank of America on the process and plans to close 150 to 200 underperforming restaurants as part of a broader restructuring.

• Billy McFarland, the infamous mastermind behind the spectacular dumpster fire known as Fyre Festival, is back. After conning the rich and famous (and some unlucky Instagram influencers) out of millions and earning himself nearly four years behind bars, McFarland was supposedly prepping for another Fyre event. With just a month to go before round two was set to launch, he's now trying to auction off the "Fyre" brand to the highest bidder, saying: "This brand is bigger than any one person" — this coming from the guy who turned it into a global meme against the gullible.

Updates On The Block

• UPS (NYSE:UPS) is acquiring Canadian healthcare logistics firm Andlauer Healthcare Group (TSX:AND) for approximately $1.6 billion, paying C$55 per share—a 31% premium. The deal, expected to close by year-end, could pressure rivals like FedEx and DHL to expand their presence in the higher-margin healthcare sector. Notably, Andlauer's CEO, Michael Andlauer, also owns the NHL's Ottawa Senators, who are currently down 2-0 in a series against the Toronto Maple Leafs.

• Kimberly-Clark (NYSE:KMB) has short-listed three strategic bidders for its global tissue unit, which could sell for around $4 billion. The unit generates approximately $500 million in annual EBITDA, and binding bids are expected by mid-May, according to Reuters.

• Clothing brand Guess (NYSE:GES) previously received a $677-million take-private bid from WHP Global. The brand is also considering a takeover bid from private equity-backed Authentic Brands Group. ABG backers include CVC Capital Partners, General Atlantic, HPS Investment Partners and Leonard Green & Partners.

• Merck KGaA is in late-stage talks to buy SpringWorks Therapeutics for around $3.5 billion, or approximately $47 per share. A deal could be announced as soon as Monday, Bloomberg reported. The deal would support Merck's pharma division, which is facing a patent expiration for a multiple sclerosis drug.

• Tencent Music is reportedly in discussions with China-based startup Ximalaya. The price tag is roughly $2.4 billion in a cash-and-stock deal. A deal could be finalized in the coming weeks, though discussions are ongoing. Ximalaya, backed by Tencent, Baidu and Sony Music, had 303 million monthly active users in 2023 and previously delayed a planned Hong Kong IPO. Tencent Music, which owns QQ Music, Kugou, Kuwo and WeSing, went public in the U.S. in 2018 and now has a market cap of about $20.6 billion.

• European regulators are preparing to investigate Universal Music Group's proposed $775 million acquisition of Downtown Music Holdings, the Financial Times reports. The update follows antitrust concerns raised in Austria and the Netherlands. Although the deal didn’t meet EU-wide merger notification thresholds, the European Commission accepted requests to review it due to potential impacts on competition within the Single Market. Universal announced the acquisition via its Virgin Music division in December.

Bankruptcy Block

• Bertucci's is going back, not for seconds, but for thirds. The casual dining franchise known for its pizza is headed for Chapter 11 bankruptcy. This would be the third time since 2018. The chain closed 7 of its 22 locations before filing, leaving 15 operating restaurants across six states. The Northborough, Massachusetts-based franchise has downsized significantly from 56 locations in 2018. It is now exploring a fast-casual spinoff, Bertucci's Pronto, to adapt to shifting consumer preferences. The company also pointed to broader struggles in the dining sector, citing the bankruptcies of Red Lobster and TGI Fridays.

Check out last week’s edition of the Deal Dispatch.