Roark Capital seeks to buy Subway restaurant chain for 9.6 billion dollars

The Subway restaurant chain could close a $9.6 billion sale by private equity firm Roark Capital.

The famous sandwich chain, Subway, could be acquired by private equity firm Roark Capital, which is set to close a $9.6 billion deal, equivalent to approximately €8.825 billion, as noted by The Wall Street Journal.

Earlier this year Subway was considering a possible sale for 10 billion dollars, as a result of rising costs and competition, thanks to the growing popularity of chains such as Popeyes or Chick-fil-A. But the family-owned company, founded in 1965, said that no public announcement would be made until the sale process is finalized, where Roark Capital is positioned as the favorite over other competing private equity firms.

Roark Capital is no stranger to the food world, as it has a large portfolio of businesses within the food and restaurant sector, with names such as Auntie Anne’s, Arby’s, Baskin-Robbins and more in its portfolio. If the acquisition of Subway is completed, the firm will acquire the eighth largest restaurant chain in the United States, with an estimated 20,810 outlets in the United States.

Subway could close a sale for 9,600 million euros.

As pointed out by Cinco Días, other companies that have participated in the purchase process are Advent International, Bain Capital, Sachs, TPG, TDR Capital and Sycamore. Sources close to the purchase point out that the process could be completed within a week, but the media outlet explains that as the transaction is not yet closed, there is a possibility that TDR Capital or Sycamore may make a last-minute joint offer.

The chain reported a 9.2% increase in sales in 2022 compared to the previous year, and despite being immersed in a sale process, the company aims to expand the 37,000 Subway locations worldwide. In addition, the company plans to open approximately 9,000 restaurants, 4,000 of them in China.

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