A Toronto-based restaurant company announced Nov. 15 a $1 billion deal to buy the parent company of Firehouse Subs, but said the sandwich chain will remain headquartered in Jacksonville run by current management.
Restaurant Brands International Inc. said it is buying Firehouse Restaurant Group Inc. for $1 billion in cash.
Restaurant Brands owns three major fast-food chains: Burger King, Popeyes and Tim Hortons.
The publicly-traded company said it has 27,000 restaurants in more than 100 countries generating $34 billion in annual sales.
Firehouse has about 1,200 locations in 46 states and Canada and Puerto Rico and is projected to have 2021 sales of $1.1 billion, it 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,” Restaurant Brands CEO Jose Cil said in a news release.
“We see tremendous potential to accelerate U.S. and international growth at Firehouse Subs with RBI’s development expertise, global franchisee network and digital capabilities,” he said.
Firehouse CEO Don Fox and Chief Financial Officer Vincent Burchianti will continue to manage the company after the buyout, Restaurant Brands said.
The chain was founded in Jacksonville in 1994 by brothers and former firefighters Chris and Robin Sorensen.
Firehouse is growing strongly, Restaurant Brands said, with sales at stores open before the COVID-19 pandemic growing by 20% since 2019 this year.
Firehouse is expected to generate earnings before interest, taxes, depreciation and amortization of about $50 million this year and is projected to be immediately added to Restaurant Brands’ earnings per share.
The deal is expected to close within the coming months, the companies said.