2023-08-24 13:43:56
(New York) The American sandwich chain Subway announced on Thursday that it had signed a “definitive agreement” for its acquisition by the American investment company Roark Capital, for an undisclosed sum.
Posted at 9:43 a.m.
“Subway today announces that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital. This transaction represents an important milestone on Subway’s multi-year transformational journey,” the company said in a statement.
A source close to the negotiations told AFP on Tuesday that the candidates’ offers exceeded 9 billion dollars. THE Wall Street Journal referred to an offer from Roark of approximately $9.6 billion.
If so, it would be the third largest acquisition in the restaurant sector in the United States, following Burger King’s takeover of the Tim Hortons chain in 2014 (11.4 billion) and that of Dunkin’ Brands by Inspire Brands. in 2020 (11.3 billion) and ahead of that of the chain of bakeries and cafes Panera Bread by the European investment company JAB Holding in 2017 (7.5 billion).
Inspire Brands was founded in 2018 under the leadership of Roark Capital (Arby’s, Dunkin, Baskin-Robbins, Orange Theory gyms, etc.).
Contacted by AFP, Roark did not react immediately.
The timing of the operation, subject to the approval of the regulatory authorities, has not been specified.
According to the source familiar with the negotiations, a consortium bringing together the American Sycamore Partners and the British TDR Capital was also in the running.
The move represents a “big bet” by Roark “on a channel which, while well-known, has at times struggled to generate growth,” commented Neil Saunders, director at GlobaData.
Subway had announced in February that its shareholders were exploring a possible sale, specifying that there was no assurance or timetable in the matter.
Subway has more than 37,000 franchised restaurants in more than 100 countries, including more than 20,000 in the United States.
Subway was created in 1965 in Bridgeport, Connecticut by 17-year-old Fred DeLuca, who was looking to finance his medical studies. Peter Buck, a nuclear physicist friend of his family, lends him the necessary 1000 dollars.
The first died in 2015, the second in 2021. The group has been led since 2019 by John Chidsey, the first boss of Subway not to belong to the families of the founders.
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