The well-known sandwich franchise, Subway, has recently been acquired by the private equity firm Roark Capital in a transaction amounting to $9.55 billion. This acquisition marks the conclusion of an extensive auction process characterized by numerous competing offers. The agreement also includes specific terms that involve the postponement of payment for a portion of the total transaction value.

Read More: Roark Capital nears $9.6 Billion deal to acquire Subway as negotiations reach final stages

Established in 1965, Subway remains under the ownership of its original founding families. Throughout its history, it has evolved into one of the globe’s most expansive restaurant franchises, boasting a presence of 37,000 establishments across over 100 nations. As reported by Reuters and sourced from insiders, the company has affixed specific requirements to a portion of the substantial sum that will accrue to the two owning families.

The agreement carried an appraisal of $8.95 billion, not factoring in the earn-out target. To trigger the complete payment, Subway’s cash flow must achieve specific milestones within a predetermined timeframe following the conclusion of the transaction.

A press note from the sandwich maker said that the deal would combine the chain’s “global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models”.

With approximately $37 billion in assets under its management, the private equity company specializes in managing franchised enterprises. Its portfolio encompasses various restaurant franchises such as Arby’s, Dunkin’, and Buffalo Wild Wings.