On Thursday, the American sandwich chain Subway made a significant announcement that it had entered into a definitive agreement to be acquired by affiliates of Roark Capital. This marks the ending of over five decades of ownership by the sandwich chain's founding family, the company said in a statement.
With $37 billion in assets under management, Roark Capital is a private equity firm that focuses in investing in consumer and business service enterprises. Their expertise lies particularly in franchise and franchise-related ventures. Roark is recognised for its role as a reliable collaborator for both management teams and business proprietors.
"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 of Subway.
"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," he added.
Following Subway's announcement of its 10th consecutive quarter of positive same-store sales, this transaction has taken place. The company will persist in implementing its strategy, emphasizing aspects such as sales expansion, menu creativity, restaurant modernization, enhancements in the overall guest experience, and the pursuit of international growth, the company said in the statement.
Financial Advisors and legal Counsel
J.P. Morgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway
