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JPMorgan hopes to wrap Subway sale process by Labor Day

Richard Collings
Illustration of a large sub sandwich sticking out a melting block of ice

Illustration: Annelise Capossela/Axios

Investment bank JPMorgan, which is advising Subway on its sale process, hopes to wrap a deal by Labor Day, according to a source familiar with the situation.

Why it matters: The sandwich shop chain sale, which at one point was to be completed in July, is evolving and continues to grind forward.

  • There have been hurdles, including increasingly expensive debt financing and a gap in price expectations.

Driving the news: Bloomberg reports that PE firm Advent International, which had partnered with Goldman Sachs Asset Management, has dropped out of the auction, citing sources familiar.

  • It's competing with two other PE firms, Roark Capital and TDR Capital, per the report.
  • Reuters adds that TDR is in talks to partner with Sycamore Partners on its bid.
  • Axios had previously identified Roark as one of the bidders.

Details: The bankers are still aiming for a purchase price between $9 billion and $10 billion, the source says.

  • JPMorgan is willing to completely finance a transaction if needed, the source adds.

Caveat: Per usual, there is still a chance a deal might not get done.

JPMorgan and Goldman Sachs Asset Management declined to comment, while Subway, Advent, TDR and Roark did not respond to a request for comment.

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