Some of the world’s greatest buyout corporations are exploring the potential for a joint bid for Subway, the $10bn (£8.3bn) sandwich chain.
Sky News has learnt that Advent International, Bain Capital and TPG are contemplating teaming up in a so-called “club deal” because the public sale of Subway nears the conclusion of a second spherical of bidding.
Bidders have up to now been prohibited from becoming a member of forces, however the measurement of the potential deal means non-public fairness corporations might want to safe companions if they’re to finish a takeover of one of many world’s greatest fast-food operators.
Bankers count on the chain to fetch a valuation of between $8bn (£6.6bn) and $10bn (£8.3bn) after its controlling household shareholders instructed JP Morgan to supervise an public sale.
Sky News revealed in March that rival bidders together with Goldman Sachs’s asset administration arm and TDR Capital – which collectively owns Asda with the billionaire brothers Mohsin and Zuber Issa.
A change of possession of Subway can be the primary since its maiden retailer was opened in Connecticut in 1965 by Peter Buck, a nuclear physicist.
Since then, it has grown into one of many world’s largest quick-service restaurant chains throughout 37,000 – primarily franchised – shops in additional than 100 nations.
In the UK, Subway trades from greater than 2,000 websites, promoting made-to-order sandwiches, wraps and salads.
It is larger in Britain by variety of shops than rivals reminiscent of Greggs and McDonald’s.
In an announcement earlier this yr, the corporate confirmed that its shareholders had been “exploring a possible sale of the company”.
“There is no indication of timing or assurance that a sale will occur,” it stated.
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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 firm not too long ago introduced one other record-setting yr, ending 2022 exceeding international gross sales projections and reaching eight consecutive quarters of optimistic same-store gross sales development.”
Advent, Bain and TPG all declined to remark.
Content Source: information.sky.com