Private equity firms TDR Capital and Sycamore Partners are in negotiations to jointly bid for the purchase of restaurant chain Subway, Reuters reported.
In January this year, a sale reportedly valued the Connecticut-based restaurant group at more than $10bn. The following month, Subway confirmed its intention for sale and JP Morgan was appointed to advise on the matter.
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Presently, it is unclear whether TDR and Sycamore can meet this valuation.
Citing people familiar with the development, Reuters said that the bidders are in the process of due diligence. Subway could close the transaction by the end of this month.
None of the parties involved have confirmed the development.
A Roark Capital-led group is also vying for Subway. Meanwhile, an Advent International and Goldman Sachs team, which had partnered to bid for the restaurant chain, is said to have backed out of the race.
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By GlobalDataSubway reported a 9.8% year-on-year growth in its global same-store sales for the first half of 2023 and an 11.1% rise in digital sales.
In North America, the chain’s same-store sales increased 9.3% while digital sales soared by 17.8%.
Last month, the restaurant installed deli meat slicers across its 20,000 US sites to serve freshly sliced meats, moving away from its earlier practice of using pre-sliced meats from factories.
