Subway announced on Thursday that it will be sold to private equity firm Roark Capital. The terms of the deal were not disclosed, but it was reported earlier this week that Roark was offering around $9.6 billion for Subway, outbidding rival buyout firms TDR Capital and Sycamore.
“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” said Subway CEO John Chidsey.
Subway, founded in 1965 as “Pete’s Super Submarines,” is now one of the world’s largest restaurant chains with over 37,000 outlets in more than 100 countries. In recent years, the chain has faced increased competition from fast-growing rivals like Panera and Firehouse Subs. To boost growth, Subway has been modernizing its stores, refreshing its menu, and introducing new sandwiches.
Roark Capital, which specializes in franchised businesses, owns multiple restaurant chains including Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and Sonic. The acquisition of Subway adds to Roark Capital’s portfolio of successful brands.
With this acquisition, Roark Capital aims to leverage Subway’s global presence and brand value to drive long-term growth and enhance its position in the quick-service restaurant industry.