Sandwich chain Subway sold to investor Roark Capital for $9.55 billion

Global sandwich chain Subway has entered into a definitive agreement to be acquired by private equity firm Roark Capital. 

However, the company didn't disclose the financial terms of the deal. A WSJ report suggested the investment firm offered Subway around $9.55 billion for the acquisition.

Roark is an Atlanta-based private equity firm that invests in consumer and business service companies, specialising in franchise and franchise-like businesses. At present, the firm has $37 billion in assets under management (AUM). 

"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."

Post-acquisition, Subway will continue to focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion, the release said.

The development comes almost two weeks after the sandwich chain announced leadership transitions, where its President of North America, Trevor Haynes, left the company after 17 years. The role was replaced by Douglas Fry, Country Director of Subway Canada, effective September 5, 2023.

Subway was founded in 1965 and has 37,000 outlets in more than 100 countries.

However, The company has been significantly losing market share in recent years in the US market to fast-growing rivals like Panera and Firehouse Subs, which feature more varied menus and newer stores. 

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