Who owns Roark Capital Group? $9.6 billion Subway deal explained

Subway, the world's largest sandwich chain, is on its way to ending over five decades of family ownership as the brand announced the news of its sale to Roark Capital Group. Founded by Neal K. Aronson, Roark Capital Group is a privately held company known for its restaurant and franchise-based business domain expertise.

The Atlanta‐based private equity firm has entered into a definitive agreement for the acquisition of Subway, thus leaving behind the major bidders, including Sycamore Partner, TDR Capital, and others. While the two brands have not disclosed the signing amount for the deal, reports from the Wall Street Journal suggest it to be roughly over $9.6 billion.

Struggling over the last few years, Subway seems to have shown some impressive results this year, with an increase of over 9.8% in same-store sales. As such, the transaction with Roark Capital is expected to fuel the company's growth even further as it aims to elevate the guest experience and work on international expansions.

Subway and Roark have entered an agreement for the acquisition (Image via Picture Alliance / Getty Images)

The fast food chain made the news of the sales public through a press release on August 24, with John Chidsey, Chief Executive Officer, Subway, saying:

"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world."

Looking at the brighter side and hopeful for the positive changes following the deal with Roark, Chidsey added:

"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."

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All about the Roark Capital Group, which will be acquiring Subway under a $9.6 billion deal

Founded by Neal K. Aronson in 2001, the Roark Capital Group is a privately held company with over $37 billion in "assets under its management." Headquartered in Atlanta, Georgia, the private equity firm has entered into a definitive agreement for the acquisition of Subway.

Boasting a massive investment portfolio, including several major franchise-based restaurant businesses, including Inspire Brands, Roark is reported to have closed the deal at the final bidding price of over $9.6 billion. Moreover, its expertise in the restaurant and franchise-based business domain is not only expected to help Subway regain its domestic brand strength but is also expected to help the company bolster and expand its global presence.

The Subway deal will make Roark one of the largest restaurant operators on the globe (Image via PR Newswire)

While most of the terms of the deal are yet to be disclosed, it can't be denied that the major transaction is guaranteed to put the Roark Capital Group on the list of some of the largest restaurant operators on the globe.

For those interested, Roark's current portfolio already features dozens of restaurant chains, including Buffalo Wild Wings, Dunkin, Sonic, Arby's, Carvel, Baskin-Robbins, and Cinnabon, among others. However, none of these other businesses except Dunkin can compete with Subway in terms of total sales.