A half-dozen parties are expected to compete for the sandwich chain, according to a source familiar with the matter, with private equity firms Roark Capital Group and London-based TDR Capital.
Advent International is working with Goldman Sachs Group Inc.'s asset management arm on a bid, while Sycamore Partners is also in the mix, the people said, who asked not to be identified because the matter isn t public. Bain Capital and TPG Inc. have both dropped out of the process, the sources said.
According to one of the people, Subway is expected to sell more than $9 billion after initial searching for more than $10 billion. The firm is expected to select a winner by July 4, the People's Office said. Other suitors are still in the auction, though their identities could not be determined.
Subway, one of the world's largest restaurant chains with about 37,000 franchise-run locations in more than 100 countries, said in February it was exploring a sale and working with JPMorgan Chase Co.
The auction started in late January, with the expectation that it would take around six months, he said. The company originally drew about 20 bids, but that has since been wonnowed down about a half-dozen suitors, with the remaining parties collaborating with co-investors. While JPMorgan is offering some financing to the final buyer, bidders are free to choose their own debt.
Representatives for Roark didn't respond to suggestions for comment, while representatives for the suitors all declined to comment. A Subway spokeswoman declined to comment on the incident.
Subway is the biggest fast-food chain globally by stores count, dwarfing names like McDonald s Corp. and Burger King.
The company's profitability has been slashed as it spends money to revamp stores to keep up with those rivals, who have been investing heavily to enhance locations and improve their online capabilities. It is also grappling with stiffening competition from upstart sandwich chains like Jersey Mike s Subs.
Subway is aiming to increase franchisee profitability and protect the brand s position in the market, the company said in February.
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