The transaction combines Subway’s global presence and brand strength with Roark’s extensive knowledge of the restaurant and franchising industries.
Subway announced that it has entered into a final deal to be acquired by Roark Capital affiliates. The deal represents a significant step forward in Subway’s multi-year transformation path, combining Subway’s global reach and brand strength with Roark’s extensive knowledge of restaurant and franchise business models.
Roark is a private equity firm that manages $37 billion in assets. Roark invests in consumer and business service companies, concentrating on franchise and franchise-like enterprises, and is a trusted partner for management and business owners.
“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, CEO of Subway. “Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees.”
The transaction comes 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, modernization of restaurants, overall guest experience improvements, and international expansion.
J.P. Morgan serves as financial advisor, and Sullivan & Cromwell LLP serves as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.
As one of the world’s largest quick-service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of guests across more than 100 countries in nearly 37,000 restaurants every day. Subway restaurants are owned and operated by Subway franchisees – a network of thousands of dedicated entrepreneurs and small business owners – committed to delivering the best guest experience possible in their local communities.
Roark is an Atlanta-based private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, specialising in franchise and multi-location businesses in the retail, restaurant, consumer and business services sectors.