Roark Capital, which owns eating places Arby’s and Buffalo Wild Wings, is nearing a deal to purchase sandwich chain Subway for about $9.6 billion, the Wall Avenue Journal reported on Monday.
A deal may very well be finalized this week, the report mentioned, citing individuals accustomed to the matter.
“Subway doesn’t intend to make any additional public remark relating to the method till the transaction has been accomplished,” the corporate advised Reuters in an emailed assertion.
Reuters reported earlier this month that personal fairness corporations TDR Capital and Sycamore Companions have been in talks to workforce up of their pursuit to accumulate Subway, which in February mentioned it was exploring a potential sale of its enterprise.
Sources advised Reuters then that Subway was focusing on nicely over $9 billion in a deal, and stays unsure whether or not TDR and Sycamore can meet its worth expectations. One other group led by Roark Capital was within the operating, the sources had added.
Personal fairness agency Roark primarily invests within the franchised shopper and enterprise companies sectors. It has invested in Encourage Manufacturers, which is the proprietor of Arby’s, Baskin-Robbins, Buffalo Wild Wings and Dunkin’ amongst others.
Subway, which has about 37,000 eating places operating in over 100 nations, was based in 1965 by 17-year-old Fred DeLuca and household good friend Peter Buck.
The corporate has been owned by the founding households since its first outlet opened as “Pete’s Tremendous Submarines” in Bridgeport, Connecticut.
For the primary half of 2023, Subway noticed a 9.3% enhance in same-store gross sales in North America, as its strikes to revamp its menus, rework its eating places and enhance advertising efforts helped draw extra clients even within the face of stiff competitors.
Roark Capital didn’t instantly reply to a Reuters request for remark.
