RaceTrac convenience stores acquiring Potbelly sandwich shops
The RaceTrac convenience store company announced Wednesday that it has purchased the Potbelly sandwich shop company for millions in cash.
A Gulf gas station St. Louis, seen here in April of 2020. Gulf is owned by the RaceTrak company, which announced Wednesday it has purchased the Potbelly sandwich shop company. File Photo by Bill Greenblatt/UPI UPI
Sept. 10 (UPI) -- The RaceTrac convenience store company announced Wednesday that it has purchased the Potbelly sandwich shop company for millions in cash.
RaceTrac and Potbelly "have entered into a definitive merger agreement pursuant to which RaceTrac will commence a tender offer to acquire all of the outstanding shares of Potbelly for $17.12 per share, in an all-cash transaction with an equity value of approximately $566 million."
The deal is expected to close later this year once regulatory approvals and any customary closing conditions are resolved.
The Racetrak company has over 800 convenience locations and around 1,200 Gulf branded locations across the United States.
The Potbelly Corporation has over 445 shops in the United States including more than a hundred franchised outlets.
"RaceTrac's strategic vision including their commitment to quality align perfectly with our mission to delight customers with great food and good vibes," said Potbelly President and CEO Bob Wright in the release.
"We have positioned Potbelly for accelerated franchise-led growth in recent years, and this transaction fortifies our path while delivering certain and immediate value to our shareholders," Wright continued. "With RaceTrac's resources, we will unlock new opportunity for this incredible brand while staying true to the neighborhood sandwich shop experience that makes Potbelly special."
"Our companies, combined, have spent over 130 years delighting guests by providing them with welcoming smiles and a place to enjoy life's everyday moments," said CEO and Chairperson of the Board at RaceTrac Natalie Morhous in the press release.
"We are proud of Potbelly's legacy as a beloved neighborhood sandwich shop and are excited to expand our family of convenience-driven brands," she added. "I'm pleased to welcome Potbelly's more than 5,200 team members and franchise partners to the RaceTrac family.
Together, we'll serve guests in even more meaningful ways," Morhous concluded.
