Subway will soon be under new ownership, the sandwich chain announced in a press release Thursday.
"Subway today announced that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital," the company stated. "The transaction is a major milestone in Subway's multi-year transformation journey, combining Subway's global presence and brand strength with Roark's deep expertise in restaurant and franchise business models."
Roark Capital has deep roots in the restaurant and franchise industry and owns chains including Jimmy John's, Cheesecake Factory, Arby's, Jamba and more. It manages $37 billion in assets, according to Thursday's press release, with a focus on "consumer and business service companies, with a specialization on franchise and multi-location businesses in the retail, restaurant, consumer and business services sectors."
The announcement follows Subway's 10th consecutive quarter of positive same store results, the company said, adding that it "will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion."
"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," John Chidsey, CEO of Subway, stated in the press release. "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."
According to the Thursday's release, J.P. Morgan is serving as financial adviser on the sale and Sullivan & Cromwell LLP is serving as legal counsel to Subway.
The price of the sale was not disclosed and timing is subject to regulatory approvals and customary closing conditions.
