$9.5 billion sandwich
It looks like Subway’s owners will just miss out on their hoped for $10 billion valuation with news that Roark Capital have agreed to buy the well-known sandwich chain in a deal worth up to $9.55 billion. The private equity firm will pay a lower calorie figure of $8.95 billion if certain financial milestones in the agreed earn-out are not achieved over a two-year (or more) period post-close. Subway becomes the latest addition to Roark’s menu of acquisitions, which includes Dunkin’ Donuts and sandwich chain competitor Jimmy John’s. It may not be quite the finger-licking figure the DeLuca and Buck families were hoping for but at least they won’t need to catch the subway to the bank!