Private equity firm Roark Capital Group is in advanced talks to acquire sandwich chain Subway for around $9.6 billion, The Wall Street Journal reported on Monday.
Subway is looking to finalize a sale this week, the newspaper reported, citing people familiar with the situation.
Representatives for Roark Capital and Subway didn’t respond to requests for comment.
Subway, which said in February it was exploring a sale, had drawn interest from a long list of suitors, including Roark as well as London-based TDR Capital and Advent International, Bloomberg News has previously reported.
The Wall Street Journal said another bidder group that includes TDR Capital and Sycamore could still come back with a higher offer.
Subway is one of the world’s largest restaurant chains with about 37,000 franchise-run locations in more than 100 countries. Subway’s profitability has been squeezed as it spends money to overhaul stores to keep up with rivals that have been investing heavily to beautify locations and build up their online capabilities. It’s also been grappling with stiffening competition from upstart sandwich chains such as Jersey Mike’s Subs.
Roark Capital has backed restaurant chains including the parent companies of Arby’s, Dunkin’ Donuts, Carvel and Carl’s Jr.
