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Roark beat out a late challenge from a rival bidding group led
by TDR Capital and Sycamore Partners, which also submitted a
final bid of more than $9 billion, according to people familiar
with the matter.
Subway, which has roughly 37,000 restaurants in more than 100
countries, did not disclose the terms of the deal on Thursday.
The deal will make Roark Capital one of the largest restaurant
operators in the world. It controls Inspire Brands, the owner of
restaurant chains including Jimmy John's, Arby's, Baskin-Robbins
and Buffalo Wild Wings.
Subway said in February it was exploring a possible sale,
drawing interest from private equity firms including Roark,
Advent International, TDR Capital and TPG as well as Goldman
Sachs' asset management arm.
The restaurant chain has been owned by its founding families
since its first outlet opened in 1965 as "Pete's Super
Submarines" at Bridgeport, Connecticut. It was founded by then
17-year-old Fred DeLuca and his family friend Peter Buck.
Subway had for several years struggled to pull customers amid
intense competition from rivals like Popeyes and Chick-fil-A,
until its turnaround plan in 2021 when it revamped its menu and
increased marketing spend.
Those efforts seem to be paying off for Subway, as its
same-store sales in North America rose 9.3% in the first half of
2023.
(Reporting by Anirban Sen in New York Deborah Sophia in
Bengaluru; Editing by Arun Koyyur)
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