- End of Family Ownership: Subway Acquired by Private Equity Firm
- Deal Valued at Over $9 Billion with Roark Capital
- Subway’s Growth and Future Prospects Under New Ownership
Subway is poised to be acquired by a private equity firm, putting an end to six decades of family ownership.
The company announced that it had reached an agreement with US-based Roark Capital, which manages the Baskin-Robbins and Dunkin’ brands.
The terms of the transaction were not disclosed, but Reuters reported that it was valued at more than $9 billion (£7.1 billion).
In recent years, Subway has experienced accelerated growth despite rising costs and increased competition.
It lauded its acquisition as a “major milestone” and said it demonstrated “substantial brand value.”
This transaction will make Roark Capital one of the world’s major restaurant operators. It already controls the U.S. restaurant colossus Inspire Brands, which owns Jimmy John’s, Arby’s, Baskin-Robbins, and Buffalo Wild Wings, among others.
John Chidsey, Subway’s chief executive officer, stated that “this transaction reflects Subway’s long-term growth potential and the substantial value of our brand and our franchisees around the world.”
Fred DeLuca, 17, and family friend Peter Buck launched Subway as Pete’s Super Submarines in Bridgeport, Connecticut, in 1965.
Before ultimately being renamed Subway in 1972, it went through several name changes.
Two years after opening sixteen sandwich shops in their native state, they began franchising the brand. It currently has nearly 37,000 locations in over 100 countries.
Franchisees, including tens of thousands of entrepreneurs and small business proprietors, own and operate Subway restaurants.
The company praised Roark’s “extensive knowledge of restaurant and franchise business models” and expressed optimism about its future with the private equity firm.
It has confronted rising costs for everything from energy to food ingredients, as have many other businesses.
The company’s first-half global revenue rose 9.8% from 2022 in July.
