The Middletown Press (Middletown, CT)
Subway sale draws bids from at least 3 companies: Report
As Subway settles into its new headquarters office in Miami, financiers in New York and Boston are among those that have submitted “indicative offers” to acquire Subway, according to Sky News.
Bain Capital, Goldman Sachs Asset Management and TPG are among “at least a handful” of bidders for Subway, Sky News reported Saturday, without disclosing the identities of its sources. Subway had confirmed earlier this year it is weighing offers for a sale, without revealing any timeline.
Subway’s ownership is currently split between the families and foundations established by the late Fred DeLuca and Peter Buck who founded Subway in 1965. The company has a dual headquarters office in Milford; it is moving this year to Shelton.
Any acquisition by a private equity firm would leave open the possibility of Subway being taken public down the road. Cava, a Mediterranean concept chain with a Greenwich location, became the first restaurant company this year to file for an initial public offering of stock in a confidential filing in February with the U.S. Securities & Exchange Commission.
Both Bain and TPG have experience flipping some of the biggest restaurant chains in the United States, to include Burger King which Subway CEO John Chidsey once led.
Bain’s current investment portfolio includes Bob’s Discount Furniture, which has its headquarters in Manchester. TPG has an active investment in the California sandwich chain Mendocino Farms. Goldman Sachs lists the southern U.S. chicken sandwich chain Zaxby’s among its current investments.
Sky News also lists Londonbased TDR Capital as a Subway suitor, which has multiple European food businesses including franchise rights to Popeye’s in France.