Buyout firm Advent joins list of suitors for $10 billion sandwich chain Subway | Economic news

A former owner of department stores DFS and HMV has joined contenders vying to take control of Subway, the global fast-food chain.

Sky News understands that Advent International is one of several private equity firms to have progressed to the second stage of a Subway auction.

Advent has submitted an indicative offer for the US-based company, which could fetch a valuation between $8bn (£6.6bn) and $10bn (£8.3bn), at the beginning of the month.

He joined rival bidders including the asset management arm of Goldman Sachs, Bain Capital, TDR Capital – the co-owner of Asda – and TPG.

TSG Consumer Partners, which counts Brewdog among its investments, is also monitoring the situation.

Family-owned chain Subway said it was considering a sale last month, paving the way for a change in ownership for the first time since its first store in Connecticut opened in 1965 by nuclear physicist Peter Buck.

Since then, it has become one of the largest fast food chains in the world through 37,000 outlets – mostly franchised – in more than 100 countries.

In the UK, Subway operates from over 2,000 locations, selling sandwiches, wraps and salads to order.

It is bigger in Britain in number of outlets than rivals such as Greggs and McDonald’s.

In a statement released last month, the company confirmed that its shareholders were “investigating a possible sale of the company”.

“There is no indication of timing or assurance that a sale will take place.

“The management team remains committed to the future and will continue to execute on its multi-year transformation journey, which includes a focus on menu innovation, restaurant modernization and improving the overall experience of its customers.

“The company recently announced another record year, ending 2022 beating global sales guidance and delivering eight consecutive quarters of positive same-store sales growth.”

JP Morgan bankers oversee the sale process.

At a valuation of $10 billion, a takeover would be too big for some early bidders to execute on their own, meaning some may seek to partner with each other or with investors in their capital funds. -investment.

A spokesperson for Advent declined to comment.

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