Aug 23, 2023 - Economy

Subway reportedly gets a new suitor in Goldman Sachs

Dan Primack

an illustration of a footlong sandwich stuffed with turkey, tomatoes, lettuce, onions and dollar bills — Illustration: Tiffany Herring/Axios

Goldman Sachs has entered the auction for sandwich shop chain Subway, teaming with existing suitors TDR Capital and Sycamore Partners, according to Bloomberg.

Why it matters: This last-minute, deep-pocketed addition could move momentum away from Atlanta-based private equity firm Roark Capital Partners, which is seeking to become one of the world's largest restaurant owners.

Roark already controls Buffalo Wild Wings, Dunkin' Donuts, Arby's, Baskin-Robbins, Jimmy John's and Sonic. .

Behind the scenes: Both bids include earnout provisions for Subway's founding family, per Reuters, which means that the headline number may not be determinative.

Goldman had been involved earlier on in the process, partnering with Advent International, but that effort petered out.
"The situation remains fluid," Bloomberg says.

The bottom line: No matter who gets Subway, it's certain to be one of the year's richest private equity deals.

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Subway reportedly gets a new suitor in Goldman Sachs

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