Roark Capital to Acquire Subway

Atlanta-based private equity firm Roark Capital has agreed to acquire Subway for just over $9.5 billion, according to numerous sources including the Wall Street Journal and CNBC. The deal brings to a close a 6-month bidding and sales process for the legacy sandwich brand. Roark Capital will now add the brand to its substantial franchise portfolio that includes Arby's, Dunkin', Buffalo Wild Wings, Sonic, and many more.

"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 been in the middle of a brand refresh with focus on menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion.

"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," said Chidsey.

Subway’s run as a family-owned business for more than half a century comes to a close with the acquisition. The chain was founded by Peter Buck and Fred DeLuca in 1965 and today has more than 37,000 locations across over 100 countries and more than 20,000 franchisees.

In a statement, Subway said, “The transaction is a major milestone in Subway's multi-year transformation journey, combining Subway's global presence and brand strength with Roark's deep expertise in restaurant and franchise business models.”