Sandwich chain Subway sold to Roark Capital for $9

Posted By: Ajay Rawat Posted On: Aug 24, 2023
FILE PHOTO: A person walks by a Subway restaurant in Manhattan, New York City, U.S., November 23, 2021. REUTERS/Andrew Kelly/File Photo (REUTERS)

Popular sandwich chain Subway is selling itself to private equity firm Roark Capital for $9.55 billion. The deal ends a long-drawn auction that saw several competing bids and comes with several conditions that defer payment on part of the deal consideration.

Founded in 1965, Subway is still owned by its founding families. Over the years it has become one of the world's largest restaurant chains, with 37,000 outlets in more than 100 countries. According to a Reuters report citing sources the company has attached some conditions to some of the windfall the two families that own it will get.

The deal was valued at $8.95 billion, excluding the earn-out target. In order for the full price to be paid, Subway's cash flow would need to reach certain milestones over a specified period after the deal closes.

ALSO READ: Subway is offering a lifetime of free sandwiches with THIS unique offer

A press note from the sandwich maker said that the deal would combine the chain's “global presence and brand strength with Roark's deep expertise in restaurant and franchise business models".

The private equity firm has around $37 billion in assets under management and specialises in franchised businesses. It owns multiple restaurant chains, including Arby's, Dunkin' and Buffalo Wild Wings.

(With inputs from agencies)

Source: Live Mint
Related Posts: SUBWAY

Comment on Post

Leave a comment

If you have a News HTS user account, your address will be used to display your profile picture.



Subway To Be Acquired By Roark Capital For $9

Posted By: Tarun Kumar Posted On: Aug 24, 2023

Sandwich chain Subway on Thursday said it will be sold to private equity firm Roark Capital, and has entered into a definitive agreement for the same. Though it has not disclosed financial details about the deal, a Reuters report pegged it at $9.55 billion.

In a company statement, Subway CEO John Chidsey said, “This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world. 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."

The transaction comes on the heels of Subway announcing its 10th consecutive quarter of positive same-store sales.

“The company will continue to execute its strategy with a focus on sales growth, menu innovation, modernisation of restaurants, overall guest experience improvements, and international expansion," Subway said in the statement.

JPMorgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.

Roark is a private equity firm with $37 billion in assets under management.

Subway, which has dual headquarters in Miami and Connecticut in the US, has about 37,000 restaurants in over 100 countries. It was founded in 1965 and is still owned by its founding families.

However, in the US, it has been losing market share in recent years to fast-growing rivals like Panera and Firehouse Subs, which feature more varied menus and newer stores. Subway has been trying to catch up; in 2021 it refreshed its menu and last year it announced a line of chef-developed sandwiches.

According to a Reuters report quoting sources, Subway will sell itself to private equity Roark Capital for $9.55 billion after agreeing to attach conditions to some of the windfall the two families that own it will get, ending a long-drawn auction that saw several competing bids.

These conditions, known as an earn-out, defer payment on part of the deal consideration, the sources familiar with the matter said. For the full price to be paid, Subway's cash flow would need to reach certain milestones over a specified period after the deal closes, they said.

The deal was valued at $8.95 billion, excluding the earn-out target, the report said. Roark beat out a late challenge from a rival bidding group led by TDR Capital and Sycamore Partners, which submitted a final bid of $8.75 billion or $8.25 billion excluding an earn-out, according to people familiar with the matter.

“Roark brings more to the table than other investors would have," said Neil Saunders, managing director of GlobalData. Its experience of helping restaurant brands grow will be helpful, “especially in the U.S. market where it remains well below the peak it hit a few years ago", he said.

In February, Subway had said it was exploring a possible sale, drawing interest from private equity firms including Roark, Advent International, TDR Capital and TPG as well as Goldman Sachs' asset management arm.

Source: News18
Related Posts: SUBWAY

Comment on Post

Leave a comment

If you have a News HTS user account, your address will be used to display your profile picture.



Dare to Change Your Legal Name to

Posted By: Ajay Rawat Posted On: Aug 09, 2023

US-based global restaurant chain Subway has received a tremendous response to its offer of a lifetime of free sandwiches to Americans willing to legally change their first name to “Subway." In just four days, nearly 10,000 people have stepped forward to embrace this unusual challenge.

The selected winner among these participants will receive USD 50,000 in gift cards along with an additional USD 750 to cover the expenses associated with the name change, Forbes reported. The submission period for the competition, which is for US-based customers only, took place online from August 1 to 4. A winner will be randomly chosen later this month.

However, this is not the first instance that the American fast-food chain is going to extraordinary lengths for marketing.

Last year, a Subway enthusiast named James Kunz received a lifetime supply of sandwiches, equivalent to USD 50,000 in gift cards, after he acquired a 12-by-12-inch tattoo featuring the logo of Subway's “Subway Series" promotion, NBC reported. The company granted similar rewards to eight others who displayed 3-inch tattoos.

According to Forbes, this offer comes as Subway is looking at options for a corporate buyer. In February, the company engaged JPMorgan Chase as an advisor for a potential USD 10 billion sale. With approximately 37,000 sandwich shops globally, including 22,000 in the US, Subway stands as the largest restaurant chain in the U.S. in terms of locations.

Although its revenue peaked at USD 18 billion in 2012 due to an aggressive expansion strategy, this figure has declined in recent years, based on insights from an industry research firm cited by the Wall Street Journal.

Despite this, Subway reported notable accomplishments in 2022, including a record-setting year and a remarkable 9.2 percent surge in same-store sales compared to 2021, along with a substantial 29.1 percent increase over 2020.

Source: News18
Related Posts: SUBWAY,SANDWICHES,UNITED STATES

Comment on Post

Leave a comment

If you have a News HTS user account, your address will be used to display your profile picture.

POPULAR News

icon
Bussiness Petrol and diesel prices In India remained stagnant on Thursday, continuing the year long price stability, that has been seen since May 21 last year, when the previous pan-India revision to fuel rates was carried out. Prices across major cities including New Delhi, Kolkata, Mumbai, Chennai did not r
icon
Bussiness Stocks to Watch: Nifty futures traded 26 points, or 0.13 per cent, higher at 19,816, signaling that Dalal Street was headed for a positive start on Monday. Here's a slew of stocks that will be in focus today for various reasons. Stocks to Watch: Nifty futures traded 26 points, or 0.13 per cent, higher at 1
icon
Bussiness OMG 2, directed by Amit Rai, received a warm welcome from the audience. The film, featuring Pankaj Tripathi, Akshay Kumar, and Yami Gautam, achieved a strong opening at the domestic box office on its first day of release. OMG 2, directed by Amit Rai, received a warm welcome from the audience. The film, f
icon
Bussiness MCX Q1 Results: Multi Commodity Exchange of India (MCX) announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 29, reporting a decline of 52.5 per cent in consolidated net profit of ₹19.66 crore, compared to ₹41.46 crore in the corresponding period last year. The operating inc
icon
Bussiness Power trading solutions provider PTC India on Saturday posted a 5.62 per cent year-on-year rise in its consolidated net profit at ₹142.70 crore for the April-June quarter of this fiscal, mainly on the back of higher revenues. Power trading solutions provider PTC India on Saturday posted a 5.62 per ce
icon
Bussiness As the deadline for filing Income Tax Returns (ITR) is just one day away, the department stated that more than 6 crore tax returns have been filed for income earned in the 2022-23 fiscal year as of Sunday evening. A total of 27 lakh ITRs have been received by the income tax department, number which has surp
icon
Bussiness Petrol, and Diesel Prices on August 10: The price of Petrol and Diesel remained constant on Wednesday, August 10 across major cities like New Delhi, Kolkata, Mumbai, and Chennai. The petrol and diesel rates for each day, whether new or constant, are announced at 6 am on the day. These, however, vary fro
icon
Bussiness RBI MPC Meeting 2023 Live Updates: Will Guv Das Hike Repo Rate Or Leave it Unchanged? Updated 1 hour ago
icon
Bussiness LPG Cylinder Rates: Oil marketing companies have cut the price of 19 kg LPG gas cylinders across the country. There has been a reduction of Rs 100 in Delhi. At the same time, a reduction of around Rs 93 has been made in other metros. Now 19 kg cylinder will be available in Delhi for Rs 1680, which was till now a
icon
Bussiness Petrol, and Diesel Prices on July 31: The price of Petrol and Diesel remained constant on Monday, July 31 across major cities like New Delhi, Kolkata, Mumbai, and Chennai. The petrol and diesel rates for each day, whether new or constant, are announced at 6 am on the day. These, however, vary from state t
icon
Bussiness India and Britain could sign a free trade agreement (FTA) this year as both countries have reached consensus on the broad contours of the proposed deal aiming to boost economic growth and jobs, a top Indian trade ministry official said. India and Britain could sign a free trade agreement (FTA) this yea
icon
Bussiness Balrampur Chini Mills posted strong Q1 results on Saturday as their profit jumped a whopping 493% to touch ₹73.5 crore during the quarter ending June 2023. During the same quarter last fiscal, the company posted consolidated net profit of ₹12.38 crore. The revenue of the company rose 28% from ₹1,094.
icon
Bussiness The price of gold marginally dropped on Thursday, with the cost of 1 gram of 22 carat gold declining to ₹5,495 from yesterday's ₹5,505, as per the figures released by Goodreturns. Accordingly, the price of 8 grams of 22 carat gold also decreased to ₹43,960 from the previous figure of ₹44,040, marking a p
icon
Bussiness Reliance Industries Ltd, India's most valuable company, has sought shareholder's approval to give Mukesh Ambani another five-year term as chairman and managing director of the company till 2029 -- a period during which he has opted to draw nil salary.
icon
Bussiness Go First airline, which has been grounded since early May, has announced a further extension of flight cancellations till July 31, the airline announced in a tweet on Sunday. Go First airline, which has been grounded since early May, has announced a further extension of flight cancellations till Jul
icon
Bussiness In order to settle the pending contractual disputes of government and government undertakings, the finance ministry has launched the ‘Vivad se Vishwas II – (Contractual Disputes)' scheme, according to an official statement released on Wednesday. Finance Minister Nirmala Sitharam announced th
icon
Bussiness If you did not link your Permanent Aadhaar Number (PAN) to Aadhaar before June 30, your PAN is now considered inoperative. This means you'll face some problems with your financial activities and taxes. For instance, you won't be able to invest in bank fixed deposits or mutual fund schemes, file income
icon
Latest News India is currently seeing a surge in cases of acute conjunctivitis or eye flu. It is caused by various factors, such as allergies or infections, resulting in inflammation of the conjunctiva that covers the white part of the eyeball. The incessant rain, humid conditions, and waterlogging are providi
icon
World Isolated internationally and authority tested by a failed mutiny, Russia hosted African leaders for a summit in his native Saint Petersburg to project normalcy and display support from its allies. Isolated internationally and authority tested by a failed mutiny, Russia hosted African leaders fo
icon
World ‘RIP Tylee' is trending on social media after Canadian entrepreneur Ryan Cohen's pooch, Tylee, died. Ryan took to Instagram to share the news, adding that Tylee inspired him to start his e-commerce company, Chewy, in 2011. Ryan was the company's CEO until 2018, and is the executive chairman of GameSt
icon
Bussiness The Reserve Bank of India (RBI) has announced the launch of the Pilot Project for Public Tech Platform for Frictionless Credit by Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the RBI. The Reserve Bank of India (RBI) has announced the launch of the Pilot Project for Public Tech Platform for Frictionless Credit by Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the RBI.
icon
World Ukrainian President Volodymyr Zelensky arrived in the Netherlands on Sunday aiming to strengthen his country's air power, a day after a “heinous" Russian missile strike killed seven people and wounded 148 in Chernihiv. Ukrainian President Volodymyr Zelensky arrived in the Netherlands on Sunday aiming to strengthen his country's air power, a day after a “heinous" Russian missile strike killed seven people and wounded 148 in Chernihiv.
icon
Bussiness India's foreign exchange reserves jumped $708 million to $602.161 billion for the week ended August 11, the Reserve Bank of India (RBI) said on Friday. This is the first increase in the kitty after declining for three consecutive weeks. In the previous reporting week, the overall reserves had declined $2.417 billion to $601.453 billion.
icon
Entertainment Filmmaker Anurag Kashyap recently gave a glowing review to Karan Johar's directorial comeback Rocky Aur Rani Kii Prem Kahaani. After Anurag revealed he loved, cried and watched the film twice, many users took to the comment section of his post and criticised the film. Responding to them all, Anurag c
icon
Life Style Disha Patani went out for a dinner date with her friends last night. The actor got clicked by the paparazzi outside a restaurant in Mumbai. Known for embracing risqué fashion statements, Disha slayed another look for the outing. She wore a golden mini dress featuring intricately-placed cut-outs. Sc