Subway sold to Roark Capital
Subway had been on the market since February and a number of parties were rumoured to be interested including Goldman Sachs and EG Group
Subway has announced that it has entered into a definitive agreement to be acquired by affiliates of private equity firm Roark Capital for an undisclosed sum.
The company has branded this is a “major milestone” in the company’s transformation journey, combining Subway’s global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models.
Roark is a private equity firm with $37bn (£29.4bn) in assets under management and focuses on investments in consumer and business service companies, with a specialisation in franchise and franchise-like businesses.
Subway had been on the market since February and a number of parties were rumoured to be interested including Goldman Sachs and EG Group.
J.P. Morgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway and timing is subject to regulatory approvals and customary closing conditions.
The transaction comes on the heels of Subway announcing its 10th consecutive quarter of positive same store sales.
John Chidsey, CEO of Subway, said: “This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world. 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.”
