Some of the world’s biggest buyout firms are exploring the possibility of a joint bid for Subway, the $10bn (£8.3bn) sandwich chain.
Sky News has learnt that Advent International, Bain Capital and TPG are considering teaming up in a so-called “club deal” as the auction of Subway nears the conclusion of a second round of bidding.
Bidders have so far been prohibited from joining forces, but the size of the prospective deal means private equity firms will need to secure partners if they are to complete a takeover of one of the world’s biggest fast-food operators.
Bankers expect the chain to fetch a valuation of between $8bn (£6.6bn) and $10bn (£8.3bn) after its controlling family shareholders instructed JP Morgan to oversee an auction.
Sky News revealed in March that rival bidders including Goldman Sachs’s asset management arm and TDR Capital – which jointly owns Asda with the billionaire brothers Mohsin and Zuber Issa.
A change of ownership of Subway would be the first since its maiden store was opened in Connecticut in 1965 by Peter Buck, a nuclear physicist.
Since then, it has grown into one of the world’s largest quick-service restaurant chains across 37,000 – mainly franchised – outlets in more than 100 countries.
In the UK, Subway trades from more than 2,000 sites, selling made-to-order sandwiches, wraps and salads.
It is bigger in Britain by number of outlets than rivals such as Greggs and McDonald’s.
In a statement earlier this year, the company confirmed that its shareholders were “exploring a possible sale of the company”.
“There is no indication of timing or assurance that a sale will occur,” it said.
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“The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience.
“The company recently announced another record-setting year, ending 2022 exceeding global sales projections and achieving eight consecutive quarters of positive same-store sales growth.”
Advent, Bain and TPG all declined to comment.
