By Jorge Vazquez
Aug 26, 2023, 10:32 AM EDT
Subway announced that it has entered into a definitive agreement to be acquired by subsidiaries of Roark Capital. The transaction will bring together Subway’s global presence and brand strength with Roark’s expertise in restaurant and franchise business models.
Roark is a private equity firm with $37 billion in assets under management, focused on investments in consumer and commercial service companies, specializing in franchising and similar businesses.
“This transaction reflects Subway’s long-term growth potential and the substantial value of our brand and our franchisees around the world,” said John Chidsey, Subway’s chief executive officer. “Subway has a bright future with Roark and we are committed to continuing to focus on a win-win approach for our franchisees, our guests and our employees.”
The transaction follows Subway announcing its tenth consecutive quarter of positive same-store sales.
The company said it will continue to execute on its strategy by focusing on sales growth, menu innovation, restaurant modernization, overall guest experience improvements and international expansion.
JP Morgan and Sullivan & Cromwell LLP are serving as legal counsel for the Subway transaction. The act is subject to regulatory approvals and customary closing conditions.
Who is Subway?
It is one of the largest quick-service restaurant brands in the world. It serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of consumers, in more than 100 countries and at nearly 37,000 restaurants every day. Subway restaurants are owned and operated by Subway franchisees, a network that includes thousands of dedicated entrepreneurs and small business owners.
Who is Roark Capital?
Roark is an Atlanta-based private equity firm that manages $37 billion in assets. The company focuses on investments in consumer and commercial services companies, specializing in franchise and multi-location businesses in the retail, restaurant, commercial and consumer services sectors.
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