Subway founders sold their company for $9.6 billion.
Subway founders sold their company for $9.6 billion. Fast food restaurant chain Subway has announced the sale of its business to investment firm Roark Capital. It is known that the transaction amount during the auction amounted to $ 9.6 billion. Roark Capital will pay $9 billion of that amount upfront, with the remaining amount contingent on achieving certain financial milestones.
Subway, founded in 1965 as a small sandwich store, has since grown into one of the largest fast-food chains in the United States. Throughout its history, the company has been owned by the families of its founders, Peter Buck and Fred DeLuca. The WSJ reported on the possible sale of the company earlier this year. At the time, Subway was valued at more than $10 billion.
The Subway chain currently has about 45,000 locations worldwide. According to CEO John Chidsey, the deal with Roark Capital will result in another 23,000 locations being added to the chain in the coming years, primarily through franchising. It's important to note that all of Subway's current management team, including the CEO, will continue to work for the company after the deal is finalized.
Roark Capital is one of the most prominent players in the U.S. food industry. In 2020, Roark-backed restaurant company Inspire Brands acquired Dunkin' Brands Group for $8.8 billion. Inspire Brands also owns Arby's, Buffalo Wild Wings, Sonic Drive-In and Jimmy John's, making it one of the largest restaurant groups in the U.S. with more than 32,000 locations. The total value of Roark Capital's investment portfolio is estimated at $37 billion.
25 AUGUST 2023, USA
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