Catering Brand International (Fast reactor),parent company Burger King, PopeyeAnd Tim Hortons have reached an agreement to acquire Firehouse Subs for US$1 billion in cash.
RBI stated that the addition of Firehouse Subs will complement its existing restaurant portfolio, adding 1,200 restaurants to its already prosperous real estate footprint.
The sandwich store chain is expected to complete approximately $1.1 billion in sales by 2021, with comparable sales growth of 20% since 2019.
RBI CEO Jose Cil said in a statement: “We see the huge potential of using RBI’s development expertise, global franchisee network and digital capabilities to accelerate the growth of Firehouse Subs in the U.S. and internationally.”
Firehouse Subs was established in Jacksonville, Florida in 1994. It consists of 97% of franchise stores in 46 states in the United States, Canada and Puerto Rico. It was initiated by brothers Chris and Robin Sorensen, both former firefighters.
The Reserve Bank of India said the transaction will be funded through a combination of debt and cash on hand.
The acquisition is expected to be completed within the next few months. After the closure, Firehouse Subs will continue to live in Jacksonville and will continue to be managed by CEO Don Fox and CFO Vincent Burchianti.
Firehouse Subs provided $62.5 million in basic life-saving equipment and other support to public safety organizations through its Firehouse Subs Public Safety Foundation.
As of 10:45 am Eastern Time on Monday, RBI’s stock price was $57.96, up 75 cents, or 1.31%.
Photo: Schlotzsky’s
