As first reported by Reuters, Equity firms TDR Capital and Sycamore Partners have taken over from Advent in talks over their bid to acquire Subway the sandwich maker, people familiar with the matter said.
Subway hopes to raise more than $9 billion from the deal, but it’s unclear whether TDR and Sycamore can meet its price expectations, Reuter’s source said. Another group led by Roark Capital remains in the running, the sources added.
Sellers continue to work hard and the railroad may complete the sale process at the end of the month, one of the sources said. Private equity firm Advent International, which is partnering with Goldman Sachs Asset Management for grants and railroads, has withdrawn from the process, the source said. Goldman Sachs may decide to partner with one of the other vendors, the sources added. Bloomberg News first reported on the Advent release.
One idea for Roark in his quest to acquire Subway is Jimmy John’s, another sandwich chain, sources say. The two sandwiches compete for customers and franchisees alike, though Roark is betting the two brands’ plans won’t clash.
Jimmy John’s, based in Champaign, Illinois, has more than 2,600 restaurants in 43 states. Railroad, based in Milford, Connecticut, has more than 37,000 hotels in 100 countries.
Subway, Roark and TDR did not immediately respond to requests for comment. Goldman Sachs and Sycamore declined to comment.
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