Done Deal: RaceTrac completes $566M Potbelly purchase
A major convenience chain’s acquisition of a fast-casual sandwich franchise is now complete.
RaceTrac Inc. has acquired the Potbelly sandwich shop brand, which includes more than 445 company- and franchise-owned shops across the United States. The deal, valued at approximately $566 million, was announced in September.
RaceTrac, which operates more than more than 800 RaceTrac and RaceWay convenience locations and approximately 1,200 Gulf convenience locations, says the deal “elevates its position in the evolving retail landscape,” combining both brands’ capabilities in real estate, franchising, operations, food innovation and marketing to drive growth and customer loyalty. Potbelly had previously announced a long-term goal of reaching 2,000 shops nationwide.
“Potbelly has spent more than 40 years creating the neighborhood sandwich shop experience customers love, and we are excited to welcome this beloved brand to the RaceTrac family,” said RaceTrac CEO and chairman Natalie Morhous. “This acquisition represents a natural evolution of our growth strategy, adding fast-casual expertise to our portfolio while maintaining the unique identity that makes Potbelly special. We’re pleased to welcome more than 5,200 Potbelly team members and franchise partners to our organization.”
As part of the acquisition, Adam Noyes, who previously served as Potbelly chief operating officer, has been appointed president of Potbelly, effective immediately. Bob Wright will remain with the company as CEO through the end of the year.
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“Today marks an exciting new chapter for Potbelly as we join the RaceTrac family,” said Wright. “With RaceTrac’s resources and expertise, we’re positioned to accelerate growth toward 2,000 plus shops while staying true to our mission of delighting customers with great food and good vibes.”
Advisors
BofA Securities acted as exclusive financial advisor and Kilpatrick Townsend & Stockton LLP acted as legal advisor to RaceTrac. Piper Sandler acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Potbelly.
