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 Road Journal reported on Monday.
A deal might be finalized this week, the report stated, citing folks conversant in the matter.
“Subway doesn’t intend to make any additional public remark concerning the method till the transaction has been accomplished,” the corporate advised Reuters in an emailed assertion.
Reuters reported earlier this month that personal fairness companies TDR Capital and Sycamore Companions have been in talks to crew up of their pursuit to accumulate Subway, which in February stated it was exploring a attainable sale of its enterprise.
Sources advised Reuters then that Subway was focusing on effectively over $9 billion in a deal, and stays unsure whether or not TDR and Sycamore can meet its value expectations. One other group led by Roark Capital was within the working, the sources had added.
Personal fairness agency Roark primarily invests within the franchised shopper and enterprise providers 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 working in over 100 international locations, 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, transform 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.
