Jimmy John's owner buys Subway for roughly $9.6 billion
- Subway entered into a definitive agreement to be acquired by affiliates of private equity firm Roark Capital.
- With $37 billion in assets under management, Roark operates Subway’s direct competitor Jimmy John’s.
- Subway operates around 37,000 restaurants worldwide, and generates annual revenues in the region of $10 billion.
Subway entered into a definitive agreement to be acquired by affiliates of private equity firm Roark Capital, the owner of Jimmy John’s. The transaction comes on the heels of Subway announcing its 10th consecutive quarter of positive same store sales.
In February, the DeLuca and Buck families that founded and owned Subway for more than 60 years, put the restaurant chain for sale. The deal is a major milestone in family-owned Subway’s multi-year transformation journey, combining Subway’s global presence with Roark’s expertise in restaurant and franchise business models. Subway and the equity firm did not announce a transaction price, but The Wall Street Journal reported Roark’s final bid was approximately $9.6 billion.
"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 press release. "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."
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. Other banners Roark operates besides Subway’s direct competitor Jimmy John’s include: Arby’s, Auntie Annie’s, Baskin-Robbins, Buffalo Wild Wings, Carvel, Cinnabon, Carl’s Jr., Hardee’s, Culvers, Dunkin’, Flower Child, Jamba, Jim ‘N Nick’s Bar-B-Q , McAlister’s Deli, Miller’s Ale House, Moe’s Southwest Grill, North Italia, Nothing Bundt Cakes, Schlotzsky's, Seattle's Best International, Sonic Drive-In and The Cheesecake Factory.
As one of the world's largest quick-service restaurant brands, Subway operates around 37,000 restaurants worldwide, and generates annual revenues in the region of $10 billion. Subway restaurants are owned and operated by Subway franchisees.