Roark Capital Nearing $9.6 Billion Deal to Acquire Subway
August 21, 20XX (Reuters) – The popular sandwich chain Subway may soon have a new owner. Roark Capital, the owner of restaurants like Arby’s and Buffalo Wild Wings, is reportedly close to finalizing a deal to buy Subway for approximately $9.6 billion, according to sources cited by the Wall Street Journal on Monday.
The deal, which could be completed as early as this week, would see Subway change hands from its current ownership. Roark Capital is a private equity firm that specializes in investing in franchised consumer and business services sectors. They have previously invested in companies like Inspire Brands, which owns Arby’s, Baskin-Robbins, Buffalo Wild Wings, and Dunkin’.
Subway officials have declined to comment on the potential acquisition until the transaction is completed. However, earlier this month, it was reported that private equity firms TDR Capital and Sycamore Partners were also in talks to collaborate on a bid to acquire Subway. In February, Subway announced that it was exploring options for a possible sale of its business.
Sources suggest that Subway has set a target of over $9 billion for a potential deal, and it remains unclear whether TDR Capital and Sycamore Partners can meet this expectation. Another group led by Roark Capital is also said to be in the running.
Founded in 1965 by 17-year-old Fred DeLuca and family friend Peter Buck, Subway has grown into a global brand with approximately 37,000 restaurants spanning over 100 countries. The company has remained in the hands of its founding families since its inception, starting as “Pete’s Super Submarines” in Bridgeport, Connecticut.
Despite increasing competition in the fast-food industry, Subway has seen a 9.3% increase in same-store sales in North America during the first half of 20XX. The company’s efforts to revamp menus, remodel restaurants, and improve marketing strategies have helped attract more customers.
As the deal progresses, Roark Capital has not yet responded to a request for comment from Reuters.
Reporting by Ananya Mariam Rajesh and Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli