Fast food holding company Restaurant Brands International (RBI) has agreed to acquire Firehouse Subs for $1bn.
Firehouse Subs is a sandwich chain based in Jacksonville, Florida, US. It was established by two brothers, Chris Sorensen and Robin Sorensen, in 1994.
The restaurant chain has 1,200 locations across 46 US states, Canada and Puerto Rico. Around 97% of these locations are operated by franchisees.
In total, these restaurants are expected to generate systemwide sales of around $1.1bn in 2021.
Firehouse Subs CEO Don Fox said: “At Firehouse Subs we are united in our commitment to and passion for hearty and flavourful food, heartfelt service and public safety.
“Joining the RBI family of brands provides an energising opportunity to assist more communities, not only across America and Canada but around the globe.”
RBI plans to finance the acquisition using its cash on hand and debt.
Subject to customary closing conditions and regulatory approvals, the deal is expected to complete in the coming months.
Once complete, Firehouse Subs will become the fourth brand in RBI’s quick-service restaurant (QSR) brand portfolio, which currently includes Tim Hortons, Burger King and Popeyes.
The sandwich chain will continue to be based in Jacksonville. Don Fox will remain as CEO of the company and chief financial officer Vincent Burchianti will also maintain his position.
RBI CEO José Cil said: “Firehouse Subs is a special brand with a talented team, impressive culture and community focus that resonates with guests and closely aligns with our core values at RBI.
“We see tremendous potential to accelerate the US and international growth at Firehouse Subs with RBI’s development expertise, global franchisee network and digital capabilities.”
Last month, RBI released its Q3 2021 results. Its quarterly revenues increased by 12% year-on-year to $1.5bn.