Subway, the giant sandwich chain, has agreed to sell itself to private equity firm Roark Capital in a deal reportedly valued at $9 billion, minting a fortune for its two founding families – but only one will walk away with the bread.
Subway’s owners are about to chow down on a footlong fortune.
The sandwich giant announced on Thursday that it has agreed to sell itself to Roark Capital, a private equity firm that owns U.S. restaurant brands including Dunkin’ Donuts, Arby’s and Buffalo Wild Wings.
The terms of the deal, which puts an end to a months-long battle over one of America’s largest fast food chains, have not been disclosed. But The Wall Street Journal and Reuters reported in the days preceding the sale that Roark was leading a field of 10 bidders at its peak with an offer to buy Subway for more than $9 billion.
The sale marks the first time in Subway’s nearly 60 year history that it will change hands from its two founding families. It also represents a big payday – at least for the one under-the-radar owner who’s held onto their half of the chain.
Neither of Subway’s original founders, Fred DeLuca and Peter Buck, are still alive. After his death in 2015, DeLuca left his 50% of the company to his wife, Elisabeth DeLuca, according to Forbes’ previous reporting. She has one son, Jonathan. The 76-year-old DeLuca would walk away from the sale with an estimated $3.4 billion (after tax) based on the reported $9 billion price tag. Her family’s estimated net worth would be about $8.2 billion after the sale.
Even before the deal, DeLuca had pocketed roughly $2.6 billion in cash from Subway royalties paid to her family over the years. She had ranked No. 699 on Forbes’ 2023 list of billionaires with an estimated net worth of $8 billion, which included an estimated value of her Subway stake. The main difference now is that most of her fortune will now be in cash.
DeLuca’s proceeds from the sale do not take into account any future payments.
