Subway Sandwiches & Salads is being sold to affiliates of the private-equity firm Roark Capital Group Inc. for an undisclosed price, the company confirmed Thursday.
The Wall Street Journal reported Monday that the sale to Roark Capital was in the works for a price of $9.6 billion after a competitive bidding process from rivals such as Sycamore Partners and TDR Capital.
A company spokesperson declined to comment on the sale price amount after a query from MarketWatch.
Roark Capital is acquiring the company from two families that have controlled the sandwich chain for nearly 60 years, with most of the sale proceeds going toward foundations affiliated with the founders, the WSJ reported.
Roark Capital plans to open tens of thousands of new locations globally, the newspaper report said.
“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 CEO John Chidsey said in a statement.
Subway said it recently announced its 10th consecutive quarter of positive same-store sales.
Looking ahead, the company said it plans to continue its strategy of sales growth, menu updates, restaurant modernization, and international expansion.
J.P. Morgan Chase & Co. was financial adviser to Subway. The company did not provide a projected date for closing the deal.
Subway Sandwiches is joining a big portfolio of consumer brands at Roark Capital which has about $37 billion of assets under management.
Current investments by Roark Capital include Arby’s, Auntie Annies, Carvel, Carl’s Jr., Cinnabon, Dunkin’, Jamba, Meineke Total Car Care, Schlotzsky’s Sonic, ServiceMaster, Primrose Schools, The Cheesecake Factory, and Anytime Fitness.
