After nearly six decades as a family-owned business, Subway has been sold to private equity firm Roark Capital in a groundbreaking deal – but it’s not the only sandwich joint in the firm’s portfolio.
The sale puts Subway under the same umbrella as rival Jimmy John’s, which is controlled by Inspire Brands also owned by Roark Capital.
The sandwich giant announced the news in a press release on Thursday, and although terms of the deal weren’t disclosed, the Wall Street Journal previously reported that Roark offered Subway $9.6 billion after it was listed for sale in February for $10 billion.
RELATED: Nearly 10,000 People Agree to Make a Legally Binding, Lifetime Commitment for Free Subway Sandwiches
Photo by Xavi Lopez/SOPA Images/LightRocket via Getty Images | Pedestrians walking past a Subway store.
The deal with Roark is one of the biggest acquisitions in the fast food industry, per CNN. The company has $37 billion in assets and a massive food portfolio with investments in Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carvel, Sonic, and more.
The largest was Inspire Brands’ $11.3 billion deal to purchase Dunkin’ in October 2020.
Subway’s sale comes as the brand tries to revamp with store renovations and freshly sliced meats.
RELATED: This Is Where Subway’s Co-Founder Left Half of His Fortune
The acquisition is a new beginning for the sandwich shop, which has been owned by the DeLuca and Buck families since Fred DeLuca and Dr. Peter Buck opened the first Subway in Bridgeport, Connecticut, in 1965, according to the company’s website.
Today, Subway is one of the world’s largest restaurant brands, with 37,000 locations across more than 100 countries.
With hopes of continuing to expand, “this transaction reflects Subway’s long-term growth potential and the substantial value of our brand and our franchisees around the world,” Subway CEO John Chidsey explained in the press release.
This story originally appeared on Entrepreneur
