Restaurant Brands International (NYSE: QSR), parent company to Burger King, Tim Hortons, and Popeyes, announced it has acquired Firehouse Subs for a total of USD1 Billion. The company’s shares rose 2% during premarket trading following the news.
According to a press release, the deal is anticipated to close “in the coming months.” Firehouse Subs will remain headquartered in Jacksonville, Florida, and will continue to be led by CEO Don Fox.
“At Firehouse Subs we are united in our commitment to and passion for hearty and flavorful food, heartfelt service, and public safety,” Fox said. “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 Jacksonville chain will be the fourth brand in Restaurant Brands’ portfolio. Restaurant Brands has been said to be on the hunt for an additional fast-food chain, though it has been busy trying to re-establish Popeyes and Tim Hortons.
“We see tremendous potential to accelerate U.S. and international growth at Firehouse Subs with RBI’s development expertise, global franchise network, and digital capabilities,” Restaurant Brands CEO Jose Cil said in a statement.
BofA Securities, Inc. and J.P. Morgan Securities LLC were financial advisors for the acquisition. Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisors to RBI, meanwhile, TD Securities and Latham and Watkins advised Firehouse Subs.
Restaurant Brands International’s stock has fallen 4% throughout the year and has a current market value of USD27.1 Billion.