Subway, the popular sandwich chain known for its foot-long sandwiches, is set to be acquired by Roark Capital Group in a proposed acquisition, ending nearly 6 decades of family ownership. The transaction, worth over $9 billion, will involve affiliates of the private equity firm and Subway, according to anonymous sources cited by Reuters.
“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.
Roark Capital Group, based in Atlanta, manages about $37 billion worth of assets. The private equity firm frequently invests in franchises, with its portfolio including sectors like restaurants, fitness, and business services. In addition to its upcoming addition of Subway to its lineup, Roark owns majority stakes in well-known chains such as Arby’s, Auntie Anne’s Pretzels, Baskin Robbins, Buffalo Wild Wings, Cinnabon, Dunkin’, Jimmy John’s, and Sonic.
Subway, with 20,810 locations, is the eighth-largest U.S. restaurant chain and generated $9.8 billion in domestic sales last year.
Chidsey expressed confidence in Subway’s future with Roark, stating that the sandwich chain is committed to a win-win-win approach for its franchisees, guests, and employees.
Roark Capital Group has previously acquired Dunkin’ Brands for $11.3 billion through its subsidiary, Inspire Brands, further expanding its presence in the restaurant industry. The private equity firm brings in approximately $77 billion in annual system revenues through its various ventures.
The name “Roark Capital” is derived from the main character in Ayn Rand’s book “The Fountainhead.” The firm claims to operate with independence and integrity, embodying the principles exhibited by the character.
With the proposed acquisition by Roark Capital Group, Subway embarks on a new chapter, embracing the growth opportunities and value that its brand and franchisees hold.