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Subway's sale process isn't over yet

Aug 21, 2023
an illustration of a dollar sign created with the subway logo

Illustration: Tiffany Herring/Axios

Subway's founding family hasn't yet picked buyer, says a source close to the situation.

State of play: The JPMorgan-led sale process is still down to two bidders, the source says, despite a WSJ story reporting that private equity firm Roark Capital is poised to prevail with a $9.6 billion bid.

  • On one side are TDR Capital and Sycamore Partners, bidding together, and on the other is Roark, whose vast restaurant holdings include Dunkin' and Arby's.

Details: Both sides are tweaking their respective debt financing packages, the source says.

  • The winning offer is expected to come between $8 billion and $10 billion.
  • An announcement is expected within the next several weeks, although JPMorgan wants to finish by Labor Day.
  • Subway and Sycamore Partners declined to comment, while JPMorgan, Roark and TDR didn't immediately respond to a request for comment.

The bottom line: "It's just coming down to the highest bidder," the source says.

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