Subway, the sandwich chain, is on the verge of being purchased by a private equity firm, marking the end of a six-decade period of family ownership.
The company revealed that it has reached an agreement with US-based Roark Capital, which holds well-known brands like Baskin-Robbins and Dunkin’.
Subway sale valued over $9 billion in acquisition by Roark Capital
While the exact terms of the sale were not disclosed, reports suggest that the valuation has exceeded $9 billion (£7.1 billion).
While Subway has experienced rapid expansion recently, it has grappled with rising costs and increased competition.
The acquisition is being hailed as a significant achievement and is seen as a recognition of the brand’s substantial value.
This purchase will elevate Roark Capital to one of the world’s largest restaurant operators. The firm already controls Inspire Brands, a US restaurant behemoth that oversees chains such as Jimmy John’s, Arby’s, Baskin-Robbins, and Buffalo Wild Wings.
John Chidsey, Subway’s CEO, expressed that this transaction reflects the brand’s long-term growth potential and the value it holds for franchisees worldwide.
Subway was originally founded in 1965 as Pete’s Super Submarines, and it has since grown into a global network of nearly 37,000 outlets across over 100 countries.
The company acknowledged Roark’s expertise in restaurant and franchise business models and expressed optimism about the future with this new partnership.
While Subway has faced challenges like increasing energy and food ingredient costs, its global sales recorded a 9.8% rise in the first half of the current year compared to the same period in 2022.