Private equity company Roark Capital to buy Subway
Sandwich business Subway is set to be bought by a private equity company, ending sixty years of family ownership.
The firm announced it had approved a deal with US-based Roark Capital, which has brands Baskin-Robbins and Dunkin’ on its lists.
The chain did not disclose the terms of the sale, but the media reported it had been valued at around $9bn (£7.1bn). Subway has proliferated recently but has faced skyrocketing prices and increased competition.
It praised its takeover as a “major milestone” and recalled the “substantial value of our brand”.
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The sale will make Roark Capital one of the biggest restaurant operators in the world. It owns US restaurant giant Inspire Brands, which owns chains including Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings.
“This transaction reflects Subway’s long-term growth potential and the substantial value of our brand and our franchisees around the world,” stated John Chidsey, chief executive of Subway.
Subway was established in 1965 as Pete’s Super Submarines in Bridgeport, Connecticut, by 17-year-old Fred DeLuca and family pal Peter Buck. It underwent a few name changes before eventually being renamed Subway in 1972.
Within two years, they opened 16 sandwich stores in their home state and began franchising the brand. It now has about 37,000 outlets in around 100 nations.
Source – BBC
