Subway Sells for Billions in One of the Biggest Acquisitions in Fast Food History—To a Company that Owns a Rival Sandwich ChainSubway was put up for sale in February.
Key Takeaways
- Subway has been trying to revamp the brand with restaurant renovations.
- Roark reportedly offered Subway $9.6 billion after it was listed for sale in February for $10 billion.
After nearly six decades as a family-owned business,Subwayhas been sold to private equity firm Roark Capital in a groundbreaking deal – but it's not the only sandwich joint in the firm's portfolio.
The sale puts Subway under the same umbrella as rivalJimmy John's, which is controlled by Inspire Brands of which Roark Capital is a majority investor.
The sandwich giant announced the news in apress releaseon Thursday, and although terms of the deal weren't disclosed, theWall Street Journalpreviously reported that Roark offeredSubway $9.6 billionafter it was listed for sale in February for $10 billion.
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Photo by Xavi Lopez/SOPA Images/LightRocket via Getty Images | Pedestrians walking past a Subway store.
The deal with Roark is one of the biggest acquisitions in the fast food industry, perCNN. The company has $37 billion in assets and a massive food portfolio with investments in Arby's, Auntie Anne's, Buffalo Wild Wings, Carvel, Sonic, and more.
The largest wasInspire Brands' $11.3 billion deal to purchase Dunkin' in October 2020.
Subway's sale comes as the brand tries to revamp with store renovations andfreshly sliced meats.
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The acquisition is a new beginning for the sandwich shop, which has been owned by the DeLuca and Buck families since Fred DeLuca and Dr. Peter Buck opened the first Subway in Bridgeport, Connecticut, in 1965, according to thecompany's website.
Today, Subway is one of the world's largest restaurant brands, with 37,000 locations across more than 100 countries.
With hopes of continuing to expand, "this transaction reflects Subway's long-term growth potential and the substantial value of our brand and our franchisees around the world," Subway CEO John Chidsey explained in the press release.
