OAN’s James Meyers
11:15 AM – Friday, August 25, 2023
After five decades of family ownership, Subway has a new company in charge of the sandwich chain.
Advertisement
On Thursday, it was announced that the private equity firm Roark Capital has purchased the fast-food chain, ending its six-month long search for a buyer.
The two sides did not announce a final transaction price, but The Wall Street Journal reported on Monday that Roark Capital’s final bid was for $9.6 billion, which came in slightly below Subway’s asking price of $10 billion.
Subway commented on the transaction, stating it’s 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.”
The firm currently owns over a dozen restaurants including Dunkin Donuts, Baskin-Robbins, Arby’s and Jimmy John’s.
“In essence, Roark brings more to the table than other investors would have, and while the deal closed based on cold hard cash, the outcome is a good one,” Neil Saunders, a retail analyst and managing director of GlobalData analytics, said.
Additionally, Subway CEO John Chidsey told The Wall Street Journal that Roark Capital is planning on keeping the sandwich chain as a separate entity within the company.
Subway was founded in 1965 by Fred DeLuca and Peter Buck, starting with their first sandwich shop in Connecticut and becoming a global franchise.
However, for almost a decade sales continued to fall for the fast-food chain. In 2022, Subway ended with just over 20,000 locations open in the U.S. compared to 27,100 locations in 2015.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
By: OAN
