According to the Wall Street Journal, a deal to buy sandwich company Subway for around $9.6 billion is close to being finalised by Roark Capital, which already owns the eateries Arby's and Buffalo Wild Wings.
According to the article, which relied on persons with knowledge of the situation, an agreement might be signed this week.
"Subway does not intend to make any further public comment regarding the process until the transaction has been completed," the company told Reuters in an emailed statement.
Earlier this month, Reuters reported that TDR Capital and Sycamore Partners, two private equity firms, were in discussions to work together to acquire Subway, which announced in February that it was considering the possibility of selling its company.
At the time, sources told Reuters that Subway was looking to spend well over $9 billion on a transaction. It is yet unknown whether TDR and Sycamore can offer the price that Subway is looking for. The sources had also mentioned that there was another contender led by Roark Capital.
The franchised consumer and business services industries are where private equity firm Roark primarily invests. It has invested in Inspire Brands, which is the parent company of several brands, including Arby's, Baskin-Robbins, Buffalo Wild Wings, and Dunkin'.
In 1965, 17-year-old Fred DeLuca and a family friend named Peter Buck launched Subway, which now has roughly 37,000 stores operating in more than 100 countries.
Since the opening of the first location as "Pete's Super Submarines" in Bridgeport, Connecticut, the business has been owned by the founding family.
In North America, Subway recorded a 9.3% gain in same-store sales for the first half of 2023 as initiatives to update menus, renovate stores and boost marketing efforts helped the chain attract more consumers despite fierce competition.
An inquiry for comment from Reuters did not receive a response right away from Roark Capital.
(Source:www.reuters.com)
According to the article, which relied on persons with knowledge of the situation, an agreement might be signed this week.
"Subway does not intend to make any further public comment regarding the process until the transaction has been completed," the company told Reuters in an emailed statement.
Earlier this month, Reuters reported that TDR Capital and Sycamore Partners, two private equity firms, were in discussions to work together to acquire Subway, which announced in February that it was considering the possibility of selling its company.
At the time, sources told Reuters that Subway was looking to spend well over $9 billion on a transaction. It is yet unknown whether TDR and Sycamore can offer the price that Subway is looking for. The sources had also mentioned that there was another contender led by Roark Capital.
The franchised consumer and business services industries are where private equity firm Roark primarily invests. It has invested in Inspire Brands, which is the parent company of several brands, including Arby's, Baskin-Robbins, Buffalo Wild Wings, and Dunkin'.
In 1965, 17-year-old Fred DeLuca and a family friend named Peter Buck launched Subway, which now has roughly 37,000 stores operating in more than 100 countries.
Since the opening of the first location as "Pete's Super Submarines" in Bridgeport, Connecticut, the business has been owned by the founding family.
In North America, Subway recorded a 9.3% gain in same-store sales for the first half of 2023 as initiatives to update menus, renovate stores and boost marketing efforts helped the chain attract more consumers despite fierce competition.
An inquiry for comment from Reuters did not receive a response right away from Roark Capital.
(Source:www.reuters.com)
