Sandwich maker Potbelly is being acquired by the gas station and convenience story chain RaceTrac for $566 million.
Potbelly, which was founded in Chicago in 1977, has 445 restaurants across the U.S. The company said the deal with RaceTrac will help it reach its goal of quadrupling in size to 2,000 locations. Potbelly stores are both company- and franchise-owned.
“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,” Potbelly CEO Bob Wright said in a statement Wednesday.
Potbelly shares jumped 32% to $17.03.
RaceTrac was founded in 1934 and is family owned. The Atlanta company operates more than 800 locations in 14 states. RaceTrac Chairman and CEO Natalie Morhous said the company is eager to expand its stable of brands.
RaceTrac said it will acquire all of Potbelly’s shares for $17.12 per share in an all-cash deal.
The acquisition is expected to close in the fourth quarter.
