SUBWAY and its more than 37,000 worldwide stores could soon be purchased by a private equity firm for $9.6billion.
Roak Capital is nearing a deal to buy the sandwich chain, which closed 500 U.S. locations last year.
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Subway could soon be in the hands of Roark Capital, as the private equity firm closes in on a $9.6billion deal, the Wall Street Journal reports.
The deal for the closely held company could be finalized this week, sources familiar with the matter told the outlet.
Subway announced in February that it was exploring a sale of the business.
The Milford, Connecticut-based chain became the eight-largest U.S. restaurant chain with a policy of aggressive restaurant expansion in the 2000s.
There are currently 37,000 worldwide Subway stores, including over 20,000 in the U.S. and over 2,200 in the U.K.
But the sandwich store’s trend for growth reversed last year as it shuttered 500 U.S. locations.
Subway has been updating its menu as of late to try and entice customers back.
In May, it added six new subs under its Signature Series, including two brand-new sandwiches plus four fresh twists on existing fan favorites.
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What’s more, the company made an $80million upgrade in July by rolling out meat slicers.
The change means that, for the first time, customers can expect freshly sliced meat at every Subway store.
All Subway locations are operating as normal during the sale process and it is possible there will not be any changes to the customer experience.
MORE ON THE DEAL
The prospective new owner of Subway, Roark Capital, is no stranger to the fast food industry.
Its portfolio includes pretzel store Auntie Anne’s, rival sandwich chain Arby’s, and ice cream shop Baskin Robbins.
Roark previously held a stake in Subway competitor Jimmy John’s and Midwest restaurant chain Culver’s.
The capital group has been fighting with rival firms TDR and Sycamore to buy Subway, and in recent days pulled ahead.
But its possible that these other investors could come back with a higher offer.
The potential sale of Subway isn’t the only big thing happening in the fast food industry as of late.
Domino’s is shutting all 142 stores in Russia after the invasion of Ukraine.
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