Roark Capital to acquire Subway for nearly $9.55 billion; leadership team to remain intact

Subway has announced that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital, a private equity firm that focuses on investments in consumer and business service companies and specialises in restaurant and franchise-like businesses.

As per Reuters, the deal which amounts to $9.55 billion marks a major milestone in Subway's multi-year transformation journey.

“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, Subway. 

He added, “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 leadership team of the sub-major, headquartered out of Miami and Connecticut, will also remain in place, post the acquisition, he stated.

In the aftermath of this deal, Subway will continue to execute its strategy with a focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion. 

Notably, Roark Capital also backs two holding companies that own multiple restaurant chains: Inspire Brands, the parent company of Dunkin’ and Jimmy John’s amongst others; and Focus Brands, which currently owns chains such as Cinnabon, Jamba, etc.

In India, it is the Everstone Group which is the master franchisee for Subway.

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