Quick service restaurant (QSR) chain Subway has entered into an agreement to be acquired by affiliates of venture capital firm Roark Capital.
The planned acquisition was announced August 24 in the form of a press release, but the release did not state the terms of the deal, nor did it reveal an anticipated date of when the transaction would close.
The announcement follows the release of Subway reporting its 10th consecutive quarter of positive same store sales. Subway said that under new ownership, the chain will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements and international expansion.
"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," said John Chidsey, CEO of Subway. "Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees."
There are nearly 37,000 subway restaurants, which are owned and operated by franchisees, in more than 100 countries.
Once the acquisition is finalized, Roark Capital will expand its stake in the QSR industry.
The Atlanta-based private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, with a specialization on franchise and multi-location businesses in the retail, restaurant, consumer and business services sectors.
Among its investments, according to Roark Capital’s website, are Inspire Brands and FOCUS Brands, which both own some of Subway’s biggest competitors.
Inspire Brands is the parent company of Arby’s, Jimmy John’s, Baskin Robbins, Buffalo Wild Wings, Dunkin’ and Sonic. FOCUS Brands is the parent company of McAlister’s Deli, Schlotzky’s, Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, Jamba and Moe’s Southwest Grill.
Other restaurants and QSR companies Roark has invested in include CKE Restaurants (parent company of Hardee’s and Carl’s Jr.), Culver’s and The Cheesecake Factory.
