Subway Chain to Be Acquired by Private Equity Firm that Owns Baskin-Robbins and Dunkin’

The company announced it had agreed a deal with US-based firm Roark Capital, but did not reveal the terms of the sale. Reuters reported it has been valued at more than USD9Bn.

The sale will make Roark Capital one of the largest restaurant operators in the world. It already controls US restaurant giant Inspire Brands, which owns chains including 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,” said John Chidsey, chief executive of Subway.

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

It went through several name changes before finally being renamed Subway in 1972.

Within two years they had opened 16 sandwich shops in their home state and then started to franchise the brand. It now has nearly 37,000 outlets in more than 100 countries.

Subway restaurants are owned and operated by franchisees, including thousands of entrepreneurs and small business owners.