Arby’s Owner Roark Set to Acquire Subway in $9.6 Billion Deal

According to insider reports, Roark Capital, a well-known private equity group that already controls food juggernauts like Arby’s and Buffalo Wild Wings, is nearing an agreement to buy the iconic sandwich business Subway for roughly $9.6 billion.

The agreement is reportedly nearing completion and could be signed as soon as this week.
In spite of these reports, Subway has taken a cautious stance, declaring in a formal email statement that it “does not intend to make any further public comment regarding the process until the transaction has been completed.”

The organization maintains a rigidly impartial posture to guarantee that the truth is always told impartially in all conversations.

According to earlier reports, the private equity firms TDR Capital and Sycamore Partners were thinking about working together to buy the sandwich brand. Subway had its sights set on a purchase valued at well over $9 billion when it publicly declared earlier this year that it was investigating the possibility of a sale.

Since it was still unclear whether TDR and Sycamore would be able to cover this significant expense, Roark Capital started to monitor the transaction as a potential bidder.

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Subway Acquisition Talks

Roark Capital has financed Inspire Brands, which is the owner of a number of franchised businesses, including Arby’s, Baskin-Robbins, Buffalo Wild Wings, and Dunkin’.

Roark Capital is renowned for its portfolio investments in the franchised consumer and business services sectors. Subway’s inclusion may help them to get a stronger foothold in the market.

The company Subway was started in 1965 by young businessman Fred DeLuca and a friend named Peter Buck. Subway began as “Pete’s Super Submarines” in Bridgeport, Connecticut, and today there are around 37,000 locations worldwide. Since the creation of their initial outlet, the founding families have held ownership.

Due to recent efforts by the company to rebuild its restaurants, redesign its menus, and improve marketing methods, same-store sales in North America increased by 9.3% during the first half of 2023. 

The chain’s ambitious growth and innovation initiatives have helped it to hold its own against the fast-food industry’s severe competition.

When contacted for additional information, Roark Capital, the company leading discussions regarding the acquisition, was unavailable for comment.

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Source: BNN