14 March 2023 , 10:50
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The former owner of DFS and HMV Advent International is reportedly considering buying the global sandwich chain Subway.
Advent International is one of a few private equity firms which have progressed through to the second stage of an auction of the fast food chain Sky News reports.
Advent International is the former owner of UK high street retailers DFS and HMV.
The firm reportedly put forward a "vindictive offer" for Subway earlier this month which could see a sale of the sandwich business of between $8billion (£6.6billion) and $10billilon (£8.3billion).
Other reported bidders for the chain include Goldman Sachs' asset management arm, Bain Capital, TDR Capital who is the joint owner of Asda, and TPG.
Subway could be sold in huge move that would affect thousands of restaurants
Sky News reports that due to the $10billion valuation of the company, some bidders may seek to team up with each other to complete the takeover.
The sandwich chain announced last month that its shareholders were "exploring" a sale of Subway but did not share much more.
The company did not indicate how long the sales process could take or whether there were any interested parties at the moment, it also said it couldn't confirm if a sale would actually take place.
The investment banking giant JP Morgan is advising Subway on the potential sale.
In its announcement Subway said it would not be making any further public comment during the process.
In the statement, the sandwich chain said: "The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience."
The Connecticut-based Subway has been privately owned since its founding in 1965 and today the company has nearly 37,000 restaurants across 100 different countries worldwide.
According to Subway's website, as of February 2023, there were around 2,300 Subway locations in the UK with over 1,800 in England, 202 in Scotland, 107 in Wales and 99 in Northern Ireland.
The chain is renowned for its made-to-order sandwiches, wraps and salads with some of its most popular products being its "footlong" Italian B.M.T., Meatball Marinara, and Steak & Cheese subs.
Advent International declined to comment.
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