Subway’s sale process is proceeding as planned, with 10 or more potential suitors going through due diligence, according to the Wall Street Journal.
The privately held sandwich franchise has confirmed reports that it is up for sale, and has hired J.P. Morgan Chase as an adviser in the process.
The first pool of bids were lodged in March, “and several interested parties have already been thrown out by the company’s advisers for offering too little,” the Wall Street Journal reports.
Private-equity firms linked to the chain, which has a $10bn sales target. include Bain Capital, Clayton, Dubilier & Rice, Goldman Sachs Asset Management and TPG Capital.
Further reports indicated interest from Atlanta-based Roark Capital Group, owner of Inspire Brands and the parent company to Arby’s, Buffalo Wild Wings, Dunkin’, Jimmy John’s and Sonic. Other interest had been reported from the EG Group.
“More than 10 possible suitors, including some big names in private equity, are conducting due diligence that should draw to a close by the end of this month,” the Wall Street Journal reported. “Final bids will likely be due around then and a buyer could emerge by the end of May, the people said.”
Subway is one of the world’s largest restaurant chains, with almost 37,000 stores across the world. It is the biggest chain in terms of U.S. stores, with around 20,000.
In 2022, the brand surpassed global sales projections and achieved eight straight quarters of positive same-store sales.
