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Aug 23, 2023 - Economy & Business

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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