Subway nears $9.6bn sale to Roark Capital
The Wall Street Journal reported on Monday (21 August) that a deal could be finalised this week, citing people familiar with the matter.
Subway announcedback in February that it was exploring a possible sale for an asking price of $10bn, with JPMorgan advising the Connecticut-based company.
Roark primarily invests in the franchised consumer and business services sectors. It has invested in Inspire Brands, which is the owner of Arby's, Baskin-Robbins, Buffalo Wild Wings and Dunkin' among others.
Subway was founded in 1965 by Fred DeLuca and family friend Peter Buck and has been owned by the founding families since its first outlet opened as Pete’s Super Submarines in Connecticut.
The group, which has over 37,000 restaurants in more than 100 countries, said earlier this year that its same-store sales climbed 9.2% in 2022. In February, the company reported its eighth consecutive quarter of sales growth - a stark reversal after years of sales decline.
Subway had around 2,300 sites in the UK & Ireland as of December 2021. Company sales in the territory decreased to £42.9m in that year, with a total loss of £738,690.
In a statement shared to Reuters, Subway said that it did not intend to make any further public comment regarding the sales process until the transaction has been completed.
Roark Capital did not immediately respond to a request for comment.
