The subway chain will sell itself to Roark capital, an American private equity firm. The agreement is finalised after numerous competing offers, including several clauses that postpone payment on a portion of the purchase price. The 1965-founded Subway has several terms and conditions that postpone payment of some of the deal considerations.
The final agreement culminated in a protracted auction that began in February and drew interest from numerous private equity groups.
Subway, one of the largest restaurants in the world with locations in more than 100 countries and dual offices in Miami and Connecticut, is currently being sold for $9.55 billion, debts included. Subway, one of the largest restaurants in the world with locations in more than 100 countries and dual offices in Miami and Connecticut, is currently being sold for $9.55 billion, debts included.
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John Chidsey, the CEO of Subway, who joined the company in 2019, discusses how these agreements can potentially increase the brand name’s value and growth.
According to a press release from Subway, “global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models” are possible thanks to the venture capital firm’s deep specialisation in franchise business models and has about 37 billion USD in assets under management.
