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Subway chain sold for US$9.55 billion

Equity firm Roark Capital edged out a score of bidders to wrap the giant restaurant deal
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There are more than 3,000 Subway locations in Canada and 37,000 around the world.| Submitted

Subway has entered into a definitive agreement to be acquired by affiliates of Atlanta, Georgia-based Roark Capital, the fast-food restaurant chain announced today, August 24.

While not released, the sale price is reported to be US$9.55 billion by both Reuters and Bloomberg.

The transaction is a major milestone in Subway's multi-year transformation combining Subway's global presence and brand strength with Roark's expertise in restaurant and franchise business models, according to Subway.

Roark is a private equity firm with $37 billion in assets under management. Roark specializes in franchise and franchise-like businesses. According to reports, Roark beat out 20 other bidders for the Subway acquisition.

“This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," said John Chidsey, CEO of Subway in a statement. "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."

Subway, founded nearly 60 years ago in the U.S., has more than 37,000 outlets in more than 100 countries and is the largest restaurant chain, by outlets, in the U.S. There is a total of 3,147 subway locations in Canada.