$37 Billion Private Equity Firm Roark Capital to Buy Subway for $9.55 Billion if All Milestones are Met or $8.95 Billion if Milestones are Not Met, Subway Founded in 1965 with $1,000 by 2 Families 17-Year Old Fred DeLuca and Nuclear Physicist Dr Peter Buck with First Restaurant Opened as Pete’s Super Submarines
25th August 2023 | Hong Kong
Private equity firm Roark Capital with $37 billion AUM (Assets under Management) has announced to buy Subway for $9.55 billion if all milestones are met or $8.95 billion if milestones are not met. Subway was founded in 1965 by 2 families 17-year old Fred Deluca and Dr Peter Buck (nuclear physicist) with the first restaurant opened as Pete’s Super Submarines (United States). Subway has more than 37,000 restaurants in over 100 countries. History – The Subway® story began in 1965 when 17-year-old Fred DeLuca asked his family friend, Dr. Peter Buck, a nuclear physicist, for advice on how to pay his college tuition. With an idea to open a submarine sandwich shop and an initial $1,000 investment from Dr. Buck, the two formed a business partnership that would ultimately change the landscape of the quick service restaurant industry. The partners opened their first restaurant in Bridgeport, Connecticut, in August of 1965, where they served freshly-made, customizable and affordable sandwiches to local guests. By 1974, Fred and Dr. Buck owned and operated 16 submarine sandwich shops throughout Connecticut. But, to take the brand even further and reach their 32-restaurant goal in time, the pair decided to begin franchising — a business model that launched the Subway® brand into a period of incredible growth and popularity. More info below:
“ $37 Billion Private Equity Firm Roark Capital to Buy Subway for $9.55 Billion if All Milestones are Met or $8.95 Billion if Milestones are Not Met, Subway Founded in 1965 with $1,000 by 2 Families 17-Year Old Fred DeLuca and Nuclear Physicist Dr Peter Buck with First Restaurant Opened as Pete’s Super Submarines “
John Chidsey, CEO of Subway: “This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world. Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees.”
$37 Billion Private Equity Firm Roark Capital to Buy Subway for $9.55 Billion if All Milestones are Met or $8.95 Billion if Milestones are Not Met
24th August 2023 – Subway today announced that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital. The transaction is a major milestone in Subway’s multi-year transformation journey, combining Subway’s global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models. Roark is a private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, with a specialization in franchise and franchise-like businesses, and prides itself on being a trusted partner for management and business owners.
The transaction comes on the heels of Subway announcing its 10th consecutive quarter of positive same store sales. The company will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion.
J.P. Morgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.
About Subway® Restaurants
As one of the world’s largest quick service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of guests, across more than 100 countries in nearly 37,000 restaurants every day. Subway restaurants are owned and operated by Subway franchisees – a network that includes thousands of dedicated entrepreneurs and small business owners – who are committed to delivering the best guest experience possible in their local communities.
About Roark Capital
Roark is an Atlanta-based private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, with a specialization on franchise and multi-location businesses in the retail, restaurant, consumer and business services sectors.
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