Subway sold to Roark Capital: Subway, the popular sandwich company, is being acquired by private equity firm Roark Capital for $9.55 billion. The deal concludes a lengthy auction that includes many competing bids and includes several conditions that defer payment on a portion of the deal consideration.
Subway was founded in 1965 and is currently owned by the founding family. With 37,000 locations in more than 100 countries, it has grown to become one of the world's largest restaurant chains. According to a Reuters report quoting sources, the company has tied some of the windfall to the two families who own it.
The total deal value, excluding the earn-out target, was $8.95 billion.
To get the full price, Subway's cash flow would need to meet certain milestones over a set duration of time after the deal closes.
According to a press release from the sandwich company, the deal will combine the chain's "global presence and brand strength with Roark's deep expertise in restaurant and franchise business models."
The private equity firm manages around $37 billion in assets and specializes in franchised firms. It owns several restaurant brands, including Arby’s, Dunkin’ and Buffalo Wild Wings.