Roark Capital, which also owns restaurants Arby's and Buffalo Wild Wings, is likely to crack a deal to buyout sandwich chain Subway for around $9.6 billion, according to a report by Reuters.
The report, quoting sources, further revealed that the acquisition deal could be finalised this week. "Subway does not intend to make any further public comment regarding the process until the transaction has been completed," the company told Reuters in an emailed statement.
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An earlier report by Reuters had revealed that private equity firms TDR Capital and Sycamore Partners were in talks to team up in their pursuit to acquire Subway, which in February said it was exploring a possible sale of its business.
Source quoted by Reuters further said that the sandwich chain was targeting well over $9 billion in a deal, and remains uncertain whether TDR and Sycamore can meet its price expectations. The sources further added that another group led by Roark Capital was in the running.
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Private equity firm Roark Capital has invested in several franchised consumer and business services sectors. It has invested in Inspire Brands, which is the owner of Arby's, Baskin-Robbins, Buffalo Wild Wings and Dunkin' among others.
Subway, which has over 37,000 restaurant chains over 100 countries, have been owned by the founding families since its first outlet opened as "Pete's Super Submarines" in Bridgeport, Connecticut.