According to a report from the Wall Street Journal on Monday, Roark Capital, the parent company of dining establishments Arby’s and Buffalo Wild Wings, is in the final stages of negotiations to acquire the sandwich franchise Subway for an estimated $9.6 billion.
Citing individuals familiar with the situation, the report mentioned that an agreement might be concluded within this week.
“Subway does not intend to make any further public comment regarding the process until the transaction has been completed,” the company told Reuters in an emailed statement.
In earlier reports this month, Reuters indicated that private equity companies TDR Capital and Sycamore Partners were engaging in discussions to collaborate in their endeavor to purchase Subway. This move comes after Subway announced in February its consideration of a potential sale of its business.
Back then, insider sources informed Reuters that Subway was aiming for a deal surpassing $9 billion. However, there is still uncertainty regarding whether TDR and Sycamore can fulfill Subway’s anticipated price requirements. Additionally, the sources had indicated that a different consortium led by Roark Capital was also actively competing for the acquisition.
Roark Capital, a private equity company, predominantly directs its investments towards the franchised consumer and business services sectors. Notably, it has extended its investments into Inspire Brands, the proprietor of various well-known establishments including Arby’s, Baskin-Robbins, Buffalo Wild Wings, and Dunkin’, among others.
Established in 1965 by 17-year-old Fred DeLuca and his family friend Peter Buck, Subway operates a network of approximately 37,000 restaurants spanning across more than 100 countries.
Since its inaugural outlet opened under the name “Pete’s Super Submarines” in Bridgeport, Connecticut, the company has remained under the ownership of its founding families.
During the initial half of 2023, Subway witnessed a notable 9.3 percent surge in same-store sales across North America. This growth can be attributed to the company’s endeavors to refresh its menus, renovate its eateries, and enhance marketing initiatives, all of which collectively attracted a larger customer base, despite the challenging competitive landscape.
A prompt response to a comment request from Reuters was not received from Roark Capital at that time.
