Goldman Sachs amongst Subway suitors in $10B sale: Report

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The late co-founders of Subway, Fred DeLuca and Peter Buck, had little inkling a long time in the past their sandwich store in Bridgeport, Conn., would develop into one of many world’s largest restaurant chains—or that the likes of Goldman Sachs would attempt to purchase it for $10 billion.

However that, apparently is what’s occurring. In line with a Sky Information report printed Saturday, the asset administration arm of Goldman Sachs is among the many suitors of the sandwich chain, which has been put up on the market with an estimated $10 billion price ticket. 

As Fortune reported in January, the heirs of DeLuca and Buck would be part of the ranks of America’s wealthiest if such a sale goes by means of. The Wall Avenue Journal initially reported on the corporate hiring advisors to discover a sale.

Subway confirmed it was exploring a doable sale in mid-February. It acknowledged: “There isn’t a indication of timing or assurance {that a} sale will happen. J.P. Morgan is advising the corporate and can conduct the sale exploration course of. The corporate doesn’t intend to make any additional public remark concerning the method till it has been accomplished.”

Sky Information, citing individuals shut the method, stated Goldman Sachs is amongst at the least a handful of suitors, with others together with Bain Capital, TDR Capital, TPG, and TSG Shopper Companions. 

Goldman Sachs declined to touch upon the matter to Fortune. Subway didn’t instantly reply to request for remark.

In 1965 a teenaged DeLuca requested Buck, a household pal and nuclear physicist, for recommendation on funding his faculty training, in keeping with Insider. That led to Buck lending him $1,000 to begin a sandwich store—a transfer that ultimately made each males billionaires. 

DeLuca ran the corporate for many years because it quickly expanded within the U.S. and internationally. Buck grew to become a largely silent co-owner after the corporate switched to a franchise mannequin in 1973.

From its humble beginnings as Pete’s Tremendous Submarines store—which did certainly pay for DeLuca’s College of Bridgeport training—the corporate went on to dwarf McDonald’s and each different restaurant chain by variety of U.S. retailers. Its roughly 21,000 home areas registered $9.4 billion in gross sales in 2021, up 13% from 2020, and worldwide it had about 37,000 shops, in keeping with the Journal

In 2019, Subway introduced in an outsider to steer it, choosing former Burger King CEO John Chidsey. However all alongside, it’s remained a non-public enterprise with two households behind the scenes. 

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