Subway announces sale of business to investment company Roark Capital

Fast food restaurant chain Subway has entered into a definitive agreement to sell the business with investment firm Roark Capital, should from a company press release.

The timing of closing the deal will depend on regulatory approval. Subway did not disclose the amount of the deal. August 21 The Wall Street Journal reportedthat its cost could reach $9.6 billion.

“The deal combines Subway’s global footprint and brand strength with Roark’s deep experience in the restaurant and franchise business,” the company said.

Roark manages $37 billion in assets and specializes in investments in firms operating in the franchising, consumer goods and business services sectors.

Subway CEO John Chidsey said the deal reflects the company’s long-term growth potential and brand value. Together with Roark, the company has a “bright future,” he said, and Subway will continue to focus on a win-win approach for franchisees.

Subway plans to sell the business became known in January. In May Reuters informedthat the restaurant chain at that time did not receive applications above $ 10 billion, as it had previously wanted. Therefore, JPMorgan Chase’s financial adviser presented potential buyers with a $5 billion debt financing plan for the acquisition.

As of 2021, Subway was the largest restaurant chain in the US, with approximately 21,000 locations in total. The first restaurant in Russia was opened in 1994, but it soon closed and resumed work only in 2004. In the same year, four more establishments were opened. According to the company’s website, the Russian restaurant chain is now the third largest Subway outlet in Europe, with 550 restaurants in 122 cities.