Subway nearing sale to Arby's investor Roark: report
Roark Capital has been in bidding war with other private equity firms to acquire sandwich chain
After months of wooing various private equity chains for a buyer, sandwich chain Subway is reportedly close to reaching a final deal to sell to Roark Capital, which is invested in Arby's franchiser and operator Inspire Brands.
Citing people familiar, the Wall Street Journal reported Monday that Roark has pulled ahead of rival suitors TDR and Sycamore with an offer worth around $9.6 billion for the restaurant franchise that could be finalized as early as this week.
A sandwich is seen on a table at a Subway restaurant on Jan. 12, 2023, in Austin, Texas. The Wall Street Journal reported Monday that Roark Capital is nearing a final deal to purchase that sandwich chain. (Brandon Bell / Getty Images)
Roark already several restaurant brands listed in its portfolio beyond Arby's, including Inspire's Buffalo Wild Wings and Jimmy John's. Roark did not immediately respond to FOX Business' request for comment on the Journal's report.
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In reaction to the report, Subway told Reuters in a statement, "Subway does not intend to make any further public comment regarding the process until the transaction has been completed."
Subway has undergone a menu and store revamp in recent years. (Subway / File)
Subway was founded in 1965 by Fred DeLuca and Peter Buck, whose first sandwich shop opened in Bridgeport, Connecticut, as "Pete's Super Submarines."
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The company has been owned by the founders' families ever since, but in February, the sandwich chain announced it would be pursuing a sale. Subway has more than 37,000 restaurants across more than 100 countries.
The exterior of a Subway restaurant is seen on Jan. 12, 2023, in Austin, Texas. Subway first announced in February that it was pursuing a sale. (Brandon Bell / Getty Images)
Subway has been revamping its operations to deal with outdated decor and $5 deals on foot-long sandwiches that eroded franchisees' profits. In 2021, the chain launched a menu overhaul and splashy marketing campaign as it embarked on a turnaround plan that has helped sales grow.
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JPMorgan Chase & Co. is Subway's financial adviser and has been running the sale process for the sandwich chain. Earlier this year, Reuters reported that JPMorgan was hoping to structure a deal valuing the company at $10 billion-plus.
Editor's note: This story was updated to clarify that Roark Capital is invested in Inspire Brands, which is the franchiser and operator of Arby's.
Reuters contributed to this report.