Billion dollar transaction
Financial investor takes over snack bar Subway
08/24/2023, 7:45 p.m
Since it was founded in 1965 in family ownership, the sandwich giant Subway has changed hands for the first time. After fast food restaurants like Dunkin’ and Buffalo Wings, he will be part of the investment company Roar Capital. The takeover is a “milestone in the transformation journey” of the snack bar.
The US sandwich chain Subway is getting a new owner with the investment company Roark Capital. In a press release, Subway announced a “definitive agreement” for a sale to the US investment company, which already owns fast food chains including Arby’s, Buffalo Wild Wings and Dunkin’ through subsidiary Inspire Brands.
A purchase price was not mentioned. At the beginning of the week, informed circles had spoken of an offer worth more than nine billion dollars for the snack chain, which operates around 37,000 restaurants in more than 100 countries through franchisees, making it one of the largest fast-food restaurant chains in the world Acquisition of Subway one of the largest acquisitions in North American restaurant history. The record is $11.4 billion that Burger King paid for Canadian chain Tim Hortons in 2014.
A consortium consisting of investment companies Sycamore Partners from the USA and TDR Capital from Great Britain was also interested in buying Subway. Now Roark Capital won the race. “The transaction is a major milestone in Subway’s multi-year transformational journey,” Subway said. The acquisition would combine Subway’s “global presence and brand strength” with Roark’s “deep expertise” in restaurants and franchise models.
Subway’s origins date back to 1965. Back then, 17-year-old Fred DeLuca opened a sandwich shop in Bridgeport, Connecticut, to help pay for his medical school. Peter Buck, a family friend, lent him the necessary $1,000. Subway is not listed on the stock exchange and is still owned by the founding families. DeLuca died in 2015, Buck in 2021.