Subway sandwich chain to be acquired by Roark Capital

Subway sandwich chain sold to Roark Capital: Popular global sandwich chain Subway announced on Thursday that it has entered into an agreement to be acquired by private equity firm Roark Capital. However, the sandwich chain did not disclose any terms of the deal. 

In its release, Subway stated that Roark is a private equity firm with $37 billion in assets under management. It focuses on investments in consumer and business service companies, with a specialization in franchise and franchise-like businesses. It owns multiple restaurant chains, including Arby’s, Dunkin’ and Buffalo Wild Wings.

Talking about the development, John Chidsey, CEO of Subway, said, "This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world. Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees."

The transaction comes close on the heels of Subway announcing its 10th consecutive quarter of positive same store sales. The company said it will continue to execute its strategy with a focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion.

It informed that J.P. Morgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway. The timing of the sale is subject to regulatory approvals and customary closing conditions.

Earlier this week, The Wall Street Journal had reported that Roark was offering around $9.6 billion for the privately-owned sandwich chain.  

Subway, was founded in 1965 and is owned by its founding families. It is one of the world’s largest restaurant chains, with 37,000 outlets in more than 100 countries.