Subway mentioned Thursday that the sandwich chain will likely be bought to personal fairness agency Roark Capital.
Phrases of the deal weren’t disclosed. Earlier this week, nonetheless, The Wall Road Journal reported that Roark was providing round $9.6 billion for Subway outbidding rival buyout corporations TDR Capital and Sycamore.
“This transaction displays Subway’s long-term development potential, and the substantial worth of our model and our franchisees all over the world,” Subway CEO John Chidsey mentioned in a press release.
Peter Buck, a nuclear physicist, and Fred DeLuca, co-founded the primary Subway restaurant, then referred to as “Pete’s Tremendous Submarines,” in Bridgeport, Connecticut, in 1965. The eatery modified its title to Subway in 1968. DeLuca died in 2015, and Buck died in 2021
At this time, Milford, Connecticut-based Subway is likely one of the world’s largest restaurant chains, with 37,000 shops in additional than 100 international locations.
In more moderen years, the chain has misplaced market share to fast-growing rivals like Panera and Firehouse Subs, which characteristic extra various menus and newer shops. To spice up development, Subway launched an effort modernize its shops in 2017. In 2021, it refreshed its menu and upgraded components, and extra just lately launched a line of chef-developed sandwiches.
Roark Capital, which has $37 billion underneath administration, makes a speciality of franchised companies and owns a number of restaurant chains. Its manufacturers embody Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s and Sonic.
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