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May 1, 2024

CT-based Subway completes $9.6B sale to private equity firm

Contributed A Subway restaurant.
By Andrew Larson

Fast-food sandwich chain Subway, based in Shelton and Miami, has completed its sale to Roark Capital, an Atlanta‐based private equity firm that owns other prominent fast-food franchises.

The deal was originally announced in August. A purchase price wasn’t disclosed, but the Wall Street Journal reported previously that Roark’s offer was about $9.6 billion. 

That would make the deal the second-largest U.S. acquisition of a U.S. restaurant chain since at least 1995, according to the WSJ, which cited data provider Dealogic.

Subway has deep Connecticut roots and was founded by Fred DeLuca and Peter Buck in Bridgeport in 1965. For decades, the company remained closely held.

The acquisition was completed Tuesday, according to an announcement.

The announcement says Subway has had three years of sales growth and positive global net restaurant growth for the first time since 2016. The company recently unveiled new menu items, including wraps and sandwich “sidekicks.”

"The entire Subway system is excited that our sale to Roark is complete," said John Chidsey, CEO of Subway. "As we look to our future, our growth journey is far from over. With a continued strategic focus on delivering better food and a better guest experience, our next chapter will be the most exciting yet."

Subway is the eighth-largest U.S. restaurant chain and has nearly 37,000 restaurants globally.

In October, Subway opened a new 90,000-square-foot global dual-headquarters in Shelton, which features an upgraded and modernized workspace.

Roark, which has $38 billion in equity under management, describes the food and restaurant industry as its largest sector, with investments in brands such as Dunkin’, Buffalo Wild Wings, Carvel Ice Cream and Cinnabon.

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