Subway (Miami) said that it has entered into a definitive agreement to be bought by private equity firm Roark Capital (Atlanta). Terms of the deal were not disclosed, but published reports earlier this week placed it at $9.6 billion.
Roark has $37 billion in assets under management, focusing on investments in consumer and business service companies, with a specialization in franchise and franchise-like businesses. Its restaurant holdings include Arby’s, Buffalo Wild Wings, Cinnabon, Jimmy Johns, McAlister’s Deli and Sonic and The Cheesecake Factory.
“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” Subway CEO John Chidsey said in a news release. “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 buy comes on the heels of Subway announcing its 10th consecutive quarter of positive same-store sales. The company said it will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements and international expansion.
Subway oversees a network of nearly 37,000 franchise sandwich shops in more than 100 countries.