What was once the world's largest restaurant chain, Subway is now being sold to a company that owns an upstart competitor.
The king of sub sandwiches announced Thursday that it has entered a binding agreement to be acquired by Roark Capital for $9.6 billion. Subway CEO John Chidsey praised the deal, saying it sets the company up for better long-term growth and brand value.
"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," Chidsey said in a statement. "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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Atlanta-based Roark is a private equity firm with $37 billion in assets, specializing in franchised businesses, like Subway. The company also own several other restaurant chains, including Dunkin' Donuts, Jimmy Johns, Arby's and Buffalo Wild Wings.
Subway, which is known for its quick service and made-to-order deli sandwiches, wraps, salads and bowls, was founded in 1965 in Bridgeport, Connecticut. It has since grown to become one of the largest restaurant chains in the world, with nearly 37,000 locations worldwide and more than 20,000 locations in the U.S.
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