Roark beat competition from TDR and Sycamore, which brought on Goldman Sachs Group Inc.’s asset management arm and sovereign wealth fund Abu Dhabi Investment Authority in a last-ditch effort to come out on top, Bloomberg News reported on Tuesday.
The Wall Street Journal reported on Monday that Roark was in advanced talks to acquire Subway for around $9.6 billion and looking to finalize a deal this week. Axios later reported that the founding family hadn’t yet picked a buyer.
One of the most recognizable names in fast food, Subway is the largest restaurant chain in the U.S. by store count, dwarfing names like McDonald’s and Burger King. Globally, it has about 37,000 franchise-run locations in more than 100 countries. The company, which said in February it was exploring a sale and working with JPMorgan Chase & Co., initially drew about 20 bids.
Roark, which manages $37 billion in assets, has backed restaurant chains including the parent companies of Arby’s, Dunkin’ Donuts, Carvel and Carl’s Jr. A purchase of Subway could draw scrutiny from antitrust regulators in the U.S. amid a general trend in Washington to take a closer look at deals.
“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” John Chidsey, CEO of Subway, said in Thursday’s statement.
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