Read this Friday’s edition of the FolhaMercado newsletter (25) – 08/25/2023 – Market

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Subway sells for $9.55 billion

The Subway restaurant chain, which since 1965 belongs to its two founding families, will now change hands.

in numbers: private equity firm Roark Capital will pay up to $9.55 billion (R$ 46.5 billion) to buy the company, according to the Reuters agency.

The value depends on a series of performance goals to be met by Subway in a given period. Excluding these conditions, the deal reaches US$ 8.95 billion (R$ 43.6 billion), according to Reuters.

Tough dispute: Roark emerges as the winner of a duel between managers that began at the beginning of the year, when the DeLuca and Buck families decided to sell the restaurant chain.

• The main rival was a group formed by managers TDR Capital and Sycamore Partners, which made a proposal of US$ 8.75 billion (R$ 42.6 billion).

Who is who:

Subway: has about 37,000 units in over 100 countries, in addition to being the eighth largest restaurant chain in the US. The company was known for its aggressive strategy of opening new stores, something that has cooled in recent years.

Roark: with experience in the food sector, the deal will make it one of the largest restaurant operators in the world. She also owns brands like Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings.

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Shein buys 1/3 owner of Forever 21

Shein said on Thursday it had bought a third of the Sparc Holdings group, which owns brands including Forever 21, Aéropostale and Reebok.

• With the transaction, the American company also becomes a minority shareholder in the Asian retailer.

The strategies:

For Shein, the purchase will help it to diversify the clothes sold on its platform with items from Forever 21, its then fast fashion rival, in addition to gaining access to points within the brand’s stores in the US.

A Forever 21 will have access to 150 million of users of the Asian giant, as well as a collection point for the return of parts purchased at Shein, which works as a consumer decoy.

↳ “Most of our consumers are in physical stores, while theirs are online”, said Jamie Salter, founder and CEO of Authentic Brands to the Wall Street Journal.

Authentic Brands purchased the Forever 21 brand after it filed for bankruptcy in the United States in September 2019.

There was a series closure of several points of sale, including in Brazil. The brand left the country in June last year, where it had 15 stores. But it continued with a partnership with Dafiti, an online fashion retail group.

In numbers: Authentic Brands claims to have global sales of $12.7 billion (BRL 62.2 billion). Shein has sales of around $22 billion (R$ 108 billion) worldwide.

In May, it raised $2 billion in a round that valued it at $66 billiona third less than what had been achieved a year earlier, according to the American newspaper.

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