The investment firm Roark Capital Group buys the eighth largest fast food chain in the US.Subway, in a deal that the sandwich shop chain’s CEO announced Thursday will help expand new locations around the world.
Subway and Roark did not announce the price of the transaction, but this week The Wall Street Journal noted that the agreement could be around 9,600 million dollars.
The Atlanta-based investment firm has agreed to buy the chain from the two founding families who have owned the sandwich company for nearly six decades.
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Subway CEO John Chidsey said the company would benefit from Roark’s experience in franchising, digital ordering strategies and international development as the chain looks to add about 23,000 restaurants around the world in the coming years.
In the next two decades, Subway is looking to open nearly 4,000 locations in China.
Subway said its management will remain after the deal closes and the food chain’s chief executive, John Chidsey, has said he intends to remain with the chain.
Another purchase from Roark’s bag
For Roark, The deal cements the company as one of the largest private equity investors in restaurant chains in the US.
In 2020, Roark-backed restaurant company Inspire Brands bought Dunkin’ Brands Group for $8.8 billion.
Also the owner of Arby’s, Buffalo Wild Wings, Sonic Drive-In and Jimmy John’s, Inspire is one of the largest restaurant groups in the United States, with more than 32,000 locations.
Subway achieved $9.8 billion in domestic sales through 20,810 locations last year, according to market research firm Technomic.
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