Final bids to acquire the sandwich chain Subway were made yesterday and it looks like the predicted frontrunner Roark Capital Group — which already controls Buffalo Wild Wings, Dunkin' Donuts, Arby's, Baskin-Robbins, Jimmy John's and Sonic — may have some steep competition following news that Goldman Sachs has thrown their weight behind competitor TDR Capital.
According to a report from Bloomberg, Roark is considered the favorite to acquire Subway for more than $9 billion. However, the TDR is still trying to come out on top by bringing in Goldman Sachs Group Inc.'s asset management arm, as well as Abu Dhabi Investment Authority. Per Reuters, both bids include earnout provisions for members of the chain's founding family.
Following a very public lawsuit over the contents of Subway's tuna salad, the chain has been focusing on updating its image in recent months. There is a renewed emphasis on freshness, bolstered by new menu items and a corporate decision to install deli-slicers at every restaurant instead of relying on pre-cut cold cuts.
A decision regarding the acquisition could come as soon as this evening.
