Subway, Dunkin’ now a package deal? Sandwich brand bought by Roark Capital

Subway today announced that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital. The transaction is a major milestone in Subway’s multi-year transformation journey, combining its global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models, noted the release.

Roark is a private equity firm with $37bn in assets under management.

The Subway-Roark deal

Roark focuses on investments in consumer and business service companies, with a specialisation in franchise and franchise-like businesses, and prides itself on being a trusted partner for management and business owners.

Roark is currently the owner of global chains including Dunkin’ Donuts, Jimmy John’s, Arby’s, Baskin-Robbins, and Buffalo Wild Wings.

John Chidsey, CEO of Subway said, “This transaction reflects our long-term growth potential, and the substantial value of our brand and our franchisees around the world”.

“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.”

The transaction comes on the heels of the sandwich chain announcing its 10th consecutive quarter of positive same-store sales. The company will continue to execute its strategy with a focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion.

J.P. Morgan is serving as financial advisor and Sullivan & Cromwell is serving as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.

As one of the world’s largest quick-service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads, and bowls across more than 100 countries in nearly 37,000 restaurants. Its restaurants are owned and operated by franchisees – a network that includes thousands of dedicated entrepreneurs and small business owners.

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