Subway, Dunkin’ now a package deal? Sandwich brand bought by Roark Capital
Transaction combines Subway’s global presence and brand strength with Roark’s deep expertise in restaurant and franchise businesses
Subway today announced that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital. The transaction is a major milestone in Subway’s multi-year transformation journey, combining its global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models, noted the release.
Roark is a private equity firm with $37bn in assets under management.
The Subway-Roark deal
Roark focuses on investments in consumer and business service companies, with a specialisation in franchise and franchise-like businesses, and prides itself on being a trusted partner for management and business owners.
Roark is currently the owner of global chains including Dunkin’ Donuts, Jimmy John’s, Arby’s, Baskin-Robbins, and Buffalo Wild Wings.
John Chidsey, CEO of Subway said, “This transaction reflects our 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.”
The transaction comes on the heels of the sandwich chain announcing its 10th consecutive quarter of positive same-store sales. The company will continue to execute its strategy with a focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion.
J.P. Morgan is serving as financial advisor and Sullivan & Cromwell is serving as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.
As one of the world’s largest quick-service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads, and bowls across more than 100 countries in nearly 37,000 restaurants. Its restaurants are owned and operated by franchisees – a network that includes thousands of dedicated entrepreneurs and small business owners.
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