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

The private equity firm with its expertise in restaurant and franchise business models will not just be acquiring the sandwich major but will also help in the expansion and modernisation of its stores, as per John Chidsey, CEO, Subway

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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