Subway agreed to be acquired by private equity company Roark Capital, ending a months-long sales process. Roark has expertise in restaurant and franchise business models, with companies in its portfolio such as Dunkin’, Cinnabon, Arby’s, Jimmy John’s and Sonic Drive-In.

According to a report by the Wall Street Journal, Roark bid around USD 9.6 billion for Subway.

Overall, Roark has USD 37 billion in assets under management and focuses on investments in consumer and business service companies, especially in franchise businesses.

“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, Subway CEO. “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 recently also announced that this is its 10th consecutive quarter of positive same-store sales. The company will continue to focus on menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion, the company said in an announcement.

J.P. Morgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway. The sale is subject to regulatory approvals.

Subway has nearly 37,000 restaurants in over 100 countries. Subway restaurants are owned and operated by Subway franchisees.

Photo: Subway