Private equity firms TDR Capital and Sycamore Partners are reportedly considering joining forces in a bid to buy global sandwich chain Subway.
The sources said Subway expects to sell for more than US$9 billion, and that it was unclear whether the two companies would be able to meet this mark.
JPMorgan Chase & Co, the investment bank advising Subway, has given the private equity firms interested in buying the company a $5 billion acquisition financing plan.
Other bidders included Advent International, which had joined forces with Goldman Sachs Asset Management in a bid for the chain, before the private equity firm reportedly dropped out, according to Bloomberg News.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
Subway was founded by Fred DeLuca and Peter Buck in 1965, and has remained under the ownership of the families behind the company since its inception.
The company announced earlier this year that it would be working with JPMorgan Chase & Co and exploring its options for a sale.
Subway, TDR and Sycamore have been contacted for comment.
Source: Food Service Equipment
Can’t stop reading? Read more
Carlyle plans structured financing to seed flagship Carlyle Partners IX fund
Carlyle plans structured financing to seed flagship Carlyle Partners IX fund Carlyle is exploring...
CVC secures €3.7bn financing for Global Sport Group backed by KKR and Pimco
CVC secures €3.7bn financing for Global Sport Group backed by KKR and Pimco CVC Capital Partners...
Bain Capital secures $12.5bn across Asia and Japan buyout funds
Bain Capital secures $12.5bn across Asia and Japan buyout funds Bain Capital has raised $12.5bn...