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

The late co-founders of Subway, Fred DeLuca and Peter Buck, had little inkling many years 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 keeping 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 a part of the ranks of America’s wealthiest if such a sale goes via. The Wall Road Journal initially reported on the corporate hiring advisors to discover a sale.

Subway confirmed it was exploring a potential sale in mid-February. It said: “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 folks shut the method, stated Goldman Sachs is amongst at the very 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 schooling, based on Insider. That led to Buck lending him $1,000 to begin a sandwich store—a transfer that finally made each males billionaires. 

DeLuca ran the corporate for many years because it quickly expanded within the U.S. and internationally. Buck turned 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 schooling—the corporate went on to dwarf McDonald’s and each different restaurant chain by variety of U.S. retailers. Its roughly 21,000 home places registered $9.4 billion in gross sales in 2021, up 13% from 2020, and worldwide it had about 37,000 shops, based on the Journal

In 2019, Subway introduced in an outsider to guide it, selecting former Burger King CEO John Chidsey. However all alongside, it’s remained a personal enterprise with two households behind the scenes. 

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