Subway agrees sale to Dunkin' owner Roark Capital

Sandwich chain Subway has agreed to be acquired by a US-based private equity firm in a move that will end more than 60 years of family ownership.

Roark Capital, which also owns the Baskin Robbins, Dunkin' and Arby's restaurant brands, is set to take control of the business.

Terms of the deal were not disclosed, but the Wall Street Journal previously said a sale could see Subway valued at more than $10b (£8.2b).

Subway said the sale was a "major milestone" in a "multi-year transformation journey" for the business.

"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 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."

Subway was founded by 17-year-old Fred DeLuca and family friend Peter Buck in Bridgeport, Connecticut in 1965.

Originally named Pete's Super Submarines, it settled on the Subway name in 1972 and has remained under ownership of its founding families.

It is now one of the world's largest quick service restaurant brands and operates nearly 37,000 sites across 100 countries. Its first UK site opened in Brighton in 1996 and it now has more than 2,000 locations in the UK.

Subway announced in February that it was exploring a sale of the business and the billionaire Issa brothers, who own Leon and Asda, were rumoured to be eyeing a takeover bid.

The sandwich chain said it had seen ten consecutive quarters of positive same store sales this year and would continue to focus on modernising its restaurants, international expansion and menu innovation under its new ownership.

Subway overhauled its UK menu in June with 15 new sandwiches, wraps and salads, including its first all-day breakfast sub.

The deal remains subject to regulatory approvals and customary closing conditions.

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