WASHINGTON (dpa-AFX) - Global fast-food restaurant Subway on Thursday announced that it has agreed to be acquired by Roark Capital, thus ending six decades of family ownership.
The deal ends a lengthy sale process that commenced in February. Subway reportedly sought $10 billion, however, the heft price tag had kept several potential suitors away. Reported bidders included TDR Capital and Sycamore Partners.
Subway and Roark did not reveal any transaction price, however, according to the Wall Street Journal the firm's final bid was roughly $9.6 billion. Roark owns brands like Baskin-Robbins and Dunkin'.
Subway has grown rapidly in recent years but has faced soaring costs and increased competition.
'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.'
Subway 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.
Roark is a private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, with a specialization in franchise and franchise-like businesses, and prides itself on being a trusted partner for management and business owners.
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