BNR – Roark Capital, the owner of Arby’s and Buffalo Wild Wings, is reportedly on the verge of securing a deal to acquire the renowned sandwich chain Subway for an estimated $9.6 billion.

Acquisition Deal Expected to Finalise Soon

The prospective transaction has garnered attention from industry insiders. It may reach finalisation during the current week, according to sources familiar with the matter.

Neither party has publicly commented regarding the ongoing negotiation process. However, Subway said it intends to maintain silence until the transaction is concluded.

Earlier this month, Reuters reported that private equity firms TDR Capital and Sycamore Partners were collaborating to acquire Subway. The sandwich chain had expressed its exploration of a possible business sale in February.

Subway Price Expectations

Sources said Subway aimed to secure a larger deal and remained uncertain if TDR and Sycamore could meet the price. Among the contenders, a group led by Roark Capital was also reportedly vying for the acquisition.

Roark Capital is a private equity entity specialising in investments within the franchised consumer and business services sectors. It has notably invested in Inspire Brands, which boasts ownership of renowned brands including Arby’s, Buffalo Wild Wings and Baskin-Robbins.

Founded in 1965 by Fred DeLuca and Peter Buck, Subway has encompassed approximately 37,000 restaurants in over 100 countries. The company has remained under the ownership of its founding families throughout its history.

Despite intense competition, Subway has managed to achieve a 9.3% upswing in same-store sales in North America during H1 2023. Its endeavours to refresh its menus, renovate its establishments, and enhance its marketing have contributed to attracting a customer base.