Business

Subway agrees sale to Dunkin’ and Baskin-Robbins owner Roark Capital

  • By Michael Race
  • Business reporter, BBC News

Sandwich chain Subway is ready to be purchased by a personal fairness agency, ending six many years of household possession.

The firm introduced it had agreed a cope with US-based agency Roark Capital, which has manufacturers Baskin-Robbins and Dunkin’ on its books.

The chain didn’t reveal the phrases of the sale, however Reuters reported it has been valued at greater than $9bn (£7.1bn).

Subway has grown quickly in recent times however has confronted hovering prices and elevated competitors.

It hailed its takeover as a “major milestone” and mentioned it mirrored “substantial value of our brand”.

The sale will make Roark Capital one of many largest restaurant operators on the earth. It already controls US restaurant large Inspire Brands, which owns chains together with Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings.

“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” mentioned John Chidsey, chief government of Subway.

Image supply, Getty Images

Image caption,

Dunkin’ is without doubt one of the many manufacturers already underneath Roark’s possession

Subway was based in 1965 as Pete’s Super Submarines in Bridgeport, Connecticut, by 17-year-old Fred DeLuca and household good friend Peter Buck.

It went by means of a number of title adjustments earlier than lastly being renamed Subway in 1972.

Within two years that they had opened 16 sandwich outlets of their house state and then began to franchise the model. It now has almost 37,000 retailers in additional than 100 nations.

Subway eating places are owned and operated by franchisees, together with 1000’s of entrepreneurs and small enterprise homeowners.

The firm famous Roark’s “deep expertise in restaurant and franchise business models” and mentioned it had a “bright future” with the personal fairness agency.

Like many firms, it has confronted rising prices of every thing from power to meals substances.

But in July the corporate mentioned its international gross sales had elevated 9.8% within the first half of this 12 months in contrast to the identical interval in 2022.

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