Subway Sale Is Near as Roark Capital Pulls Ahead: Report

Subway is closing in on a deal to sell itself to Roark Capital for $9.6 billion, The Wall Street Journal reported, citing people familiar with the matter.

After an extended and heated bidding process, the deal with the private equity firm could be finalized this week, according to The Journal. Atlanta-based Roark, which has investments in many popular food chains including Cinnabon, Sonic and Moe’s, has been competing with firms including TDR and Sycamore, the paper reported.

Subway, privately owned and based in Milford, Connecticut, first said it would explore a possible sale in February and that JPMorgan Chase would advise. 

“Subway does not intend to make any further public comment regarding the process until the transaction has been completed,” a spokesperson told The Messenger in an email.

The popular sandwich chain has already begun expansion beyond its family roots, with John Chidsey being the first chief executive officer outside of Subway’s founding families to assume the position in 2019, according to the Journal. Subway restaurants are owned by more than 21,000 franchisees with 37,000 locations in over 100 countries.