Sandwich chain Subway set to sell itself for $9.55 bn to Roark

Subway would sell itself to private equity Roark Capital for $9.55 billion after agreeing to attach conditions to some of the windfall the two families that own it will get, persons in the know said, ending a long-drawn auction that saw several competing bids.

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These conditions, known as an earn-out, defer payment on part of the deal consideration, the sources familiar with the matter said.

For the full price to be paid, Subway's cash flow would need to reach certain milestones over a specified period after the deal closes, they said.

The deal was valued at $8.95 billion, excluding the earn-out target, sources said.