Take a look at what’s clicking on FoxBusiness.com
Roark Capital Group is slated to turn into the proprietor of Subway through a proposed acquisition that the privately owned chain identified for its foot-long sandwiches unveiled Thursday.
The transaction will contain associates of the non-public fairness agency and Subway, which had been wanting into the potential of promoting for over six months. It’s price over $9 billion, Reuters reported, citing nameless sources.
“This transaction displays Subway’s long-term progress potential, and the substantial worth of our model and our franchisees all over the world,” Subway CEO John Chidsey stated.
SUBWAY AGREES TO SALE TO ROARK CAPITAL, ENDING NEARLY 6 DECADES OF FAMILY OWNERSHIP
Right here’s a better take a look at Subway’s purchaser:
Roark manages about $37 billion price of property, per its web site.
The corporate often invests in franchises, with property in its portfolio coming from sectors like eating places, health, enterprise companies and extra. It’s based mostly in Atlanta.
Subway is the eighth-largest U.S. restaurant chain with 20,810 places, which introduced in $9.8 billion in home gross sales final yr. (Michael M. Santiago/Getty Photographs / Getty Photographs)
Chidsey stated Subway “has a brilliant future with Roark,” including that the sandwich chain was “dedicated to persevering with to concentrate on a win-win-win strategy for our franchisees, our friends and our staff.”
SUBWAY IS REVAMPING ITSELF BY GOING OLD-SCHOOL WITH DELI SLICERS
Exterior its upcoming addition of Subway and its over 37,000 shops to its lineup, Roark has majority possession of Encourage Manufacturers and Focus Manufacturers, in response to previous press releases from the non-public fairness companies.
Roark, by the use of Encourage and Focus, has a slew of well-known chains. A few of them embody Arby’s, Auntie Anne’s Pretzels, Baskin Robbins, Buffalo Wild Wings, Cinnabon, Dunkin’, Jimmy John’s and Sonic.
Encourage Manufacturers is the franchisor and operator of Arby’s. (Aimee Dilger/SOPA Photographs/LightRocket through Getty Photographs / Getty Photographs)
The Roark Capital-owned firm Encourage Manufacturers acquired Dunkin’ Manufacturers for $11.3. billion In December 2020. (REUTERS/Jim Younger/File / Reuters)
DUNKIN’ BRANDS OFFERS AI MARKETING TO US LOCATIONS WITH HUBKONNECT
Jimmy John’s, a peer of Subway within the sandwich market, has a retail footprint spanning over 2,800 places.
Roark is tied to Carl’s Jr and Hardee’s, two fast-food chains, by a majority stake in CKE Eating places, which it picked up in 2013, in response to a press launch. It has different investments within the meals sector, as nicely.
On its web site, it has recognized the respective house owners of Two Males and a Truck, Worldwide Automobile Wash Group and Basecamp Health as amongst a few of their non-food-related investments.
Roark brings in “roughly $77 billion in annual system revenues” by its array of ventures, the corporate has stated.
The non-public fairness agency’s title derives from the principle character in Ayn Rand’s 1943 e book “The Fountainhead.” The way it operates is “meant to emulate these ideas of independence and integrity” that the character confirmed, in response to Roark.
Joe Toppe contributed to this report.
