Global chain, Subway, has announced that it has been acquired by affiliates of Roark Capital, after six decades as a family-owned enterprise. The transaction has been a major milestone in Subway's multi-year transformation journey, combining Subway's global presence and brand strength with Roark's deep expertise in restaurant and franchise business models.
Roark Capital is a private equity firm with $37 billion in assets under management, that has focused on investments in consumer and business service companies, specialising in franchise and franchise-like businesses. The company has prided itself as a trusted partner for management and business owners.
CEO of Subway, John Chidsey, said that this transaction reflects Subway’s long-term growth potential and the substantial value of the brand and franchisees around the world.
"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," said Chidsey.
The transaction has come on the heels of Subway announcing its 10th consecutive quarter of positive same-store sales. The company will continue to execute its strategy with a focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion.
J.P. Morgan has served as a Subway financial advisor, and Sullivan & Cromwell LLP as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.
