Potbelly Sandwich Store on October 3, 2015 in Louisville, Kentucky.
Raymond Boyd
Sandwich store chain Potbelly will probably be acquired by convenience-store operator RaceTrac in a $566 million all-cash deal, the corporate introduced Wednesday.
The deal is anticipated to shut within the fourth quarter of the yr. Shares of Potbelly shot up greater than 30% following the announcement.
The Chicago-based Potbelly has greater than 445 shops within the U.S., together with franchised places, with a purpose of reaching 2,000, in response to the corporate. RaceTrac, a family-owned firm headquartered in Atlanta, operates greater than 800 comfort shops throughout 14 states.
“RaceTrac’s strategic imaginative and prescient together with their dedication to high quality align completely with our mission to please prospects with nice meals and good vibes,” Potbelly CEO Bob Wright stated in an announcement. “Now we have positioned Potbelly for accelerated franchise-led progress in recent times, and this transaction fortifies our path whereas delivering sure and quick worth to our shareholders.”
The deal will worth Potbelly shares at $17.12 every, marking a roughly 47% premium to Potbelly’s value as of Tuesday. The corporate’s inventory is up greater than 75% this yr.
Wednesday’s deal is RaceTrac’s second vital acquisition, after its 2023 deal to accumulate Gulf Oil.
