Subway Acquired by Roark Capital Group, Ending Six-Decade Family Ownership

In a landmark move, Subway, the renowned sandwich and salad fast-food chain, is now under the aegis of Roark Capital Group. After nearly 60 years under the DeLuca family's management, this transition signals the end of Subway's era of family ownership. The acquisition positions Subway alongside other significant brands in Roark's extensive restaurant portfolio.

The family of Subway's founder, Fred DeLuca, has been running the business for almost six decades, and this is the first time management and ownership are changing hands. With the acquisition, Subway will be added to Roark Capital's portfolio of restaurant chains that already include Buffalo Wild Wings, Arby's, Baskin and Robbins, and Auntie Anne's pretzel store.

As per Fox Business, Subway agreed to hand out the company's ownership to Roark Capital. The deal was announced on Thursday, Aug. 24, and this showed that the PEF company defeated other private equity companies that wanted to buy the sandwich chain, such as TDR Capital and Sycamore Partners. It was reported that Sycamore placed a bid of more than $9 billion, but Subway picked Roark Capital.

The families of Subway's founders announced their intention to sell the company for the first time in February. They said they were considering a possible sale at that time, which quickly drew several PEF firms' attention. Goldman Sach's asset management unit and Advent International also expressed interest but eventually dropped out from the bidding race.

"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," Subway's chief executive officer, John Chidsey, said in a press release. "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."

Photo by: Subway Press Release