TORONTO — Restaurant Brands International Inc. is acquiring Firehouse Restaurant Group Inc., parent company of Firehouse Subs, for $1 billion in an all-cash transaction. The deal is expected to close in the coming months and subject to closing conditions and regulatory approvals.
Founded in 1994 by brothers and former firefighters Chris Sorensen and Robin Sorensen, Firehouse Subs has approximately 1,200 quick-service sandwich shops across 46 US states, Canada and Puerto Rico, and is expected to generate approximately $1.1 billion in systemwide sales this year. Franchisees own and operate 97% of the brand’s restaurants. The chain offers hot sandwiches featuring steamed meats and cheeses on a toasted sub roll, plus chopped salads, chili and soups. The company’s non-profit Firehouse Subs Public Safety Foundation has granted $62.5 million to public safety organizations throughout North America.
Following the closing of the transaction, Firehouse Subs will remain headquartered in Jacksonville, Fla., and will be managed by Don Fox, chief executive officer, and Vincent Burchianti, chief financial officer.
Restaurant Brands International, owner of Burger King, Tim Hortons and Popeyes Louisiana Kitchen, has approximately $34 billion in annual systemwide sales and more than 27,000 restaurants in more than 100 countries. The transaction provides footing in the $30 billion US quick-service restaurant sandwich category, according to the company.
“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,” said José Cil, CEO of Restaurant Brands. “We see tremendous potential to accelerate US and international growth at Firehouse Subs with RBI's development expertise, global franchisee network and digital capabilities."
Mr. Fox added, "Joining the RBI family of brands provides an energizing opportunity to assist more communities, not only across America and Canada, but around the globe. The donations we generate for our Foundation through our restaurants means changing and saving lives, so we can't wait to accelerate our journey at home and around the world."