American-style, quick-service chain Del Taco announced Thursday that they will merge with a "blank check" company in a $305 million deal that takes the company public. The Southern California-based fast food chain follows a similar menu to Taco Bell with their items and choices, while adding more Americanized entrees like burgers and fries.

A blank check company is one that doesn't initially have an established business plan, or formulates one based around a major merger. The acquiring company is run by Larry Levy, a Chicago-based restaurateur, and Levy Acquisition Corporation. After the merger, however, LAC will become Del Taco Restaurants Inc.

LAC will pay $150 million of the deal while the Levy family and other investors will contribute the other $120 million. An additional $35 million will be thrown in from private investors. Levy will become the chairman of Del Taco's board of directors after the deal goes through and will lead the charge in the company's growth.

Del Taco is known for highlighting their fresh ingredients, tiered menu strategy and low costs.

Compared to competitors like Taco Bell's and Chipotle's average consumer checks, $7.20 and $10.17, respectively, Del Taco is positioned as a American-style Mexican fast food chain with one of the lowest average check totals—$6.49.

The chain currently boasts 557 restaurant locations in the United States. As the company explores re-franchising, the potential for growth is nearly four times that, or 2,000 units, according to Levy. It's safe to assume the Chicago company isn't against expanding Del Taco to the East Coast.

Many Del Taco locations have already been remodeled and employees are being retrained to improve on service. The merger is expected to close in June.