Subway has reached an agreement and will be acquired by affiliates of the Atlanta-based private equity firm Roark Capital, according to a news release on Subway's website.
CNBC reports that Roark, through the holding company Inspire Brands, owns Dunkin', Baskin-Robbins, Sonic, Arby's, Buffalo Wild Wings and Jimmy John's.
Under Focus Brands, the firm owns Auntie Anne's, Carvel, Cinnabon, Jamba, McAlister's, Moe's Southwest Grill and Schlotzsky's, according to CNBC. Learn more about Roark Capital Group's portfolio here.
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Subway started as a single sandwich shop in Bridgeport in 1965, when Fred DeLuca, at the age of 17, asked his family friend, Dr. Peter Buck, a nuclear physicist, for advice on how to pay his college tuition.
Buck initially invested $1,000 to open a sandwich shop -- called “Pete’s Super Submarines” -- and he and DeLuca formed a business partnership that grew from there.
The Subway name came later, in 1968.
Business
In less than 10 years after opening that first shop, DeLuca and Buck came to own 16 sandwich shops in the state, then started franchising.
"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," John Chidsey, CEO of Subway said in a statement.
"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," Chidsey added.
Subway said the timing is subject to regulatory approvals and customary closing conditions.
