Roark Is Among Potential Buyers for Subway Sandwich Chain

Roark Capital Group is among potential buyers vying for sandwich chain Subway, according to people with knowledge of the matter.

(Bloomberg) — Roark Capital Group is among potential buyers vying for sandwich chain Subway, according to people with knowledge of the matter.

Other private equity firms are also considering bidding on the Milford, Connecticut-based company, said the people, who asked to not be identified because the matter isn’t public.

Subway is seeking a valuation of more than $10 billion, one of the people said. Some suitors may value the business at as much as $8 billion, another person said.

No final decision has been made and Roark could opt against pursuing a deal for Subway. Subway has also attracted interest from other investment firms including Advent International, Bain Capital, Goldman Sachs Group Inc.’s asset management arm, TDR Capital and TPG Inc., Sky News reported earlier this month, citing unidentified people.

A representative for Roark Capital declined to comment. A spokesperson for Subway didn’t respond to requests for comment.

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.

Roark Capital, based in based in Atlanta and led Managing Partner Neal Aronson and President Paul Ginsberg, has backed restaurant chains including the parent companies of Arby’s, Dunkin’ Donuts, Carvel and Carl’s Jr.

–With assistance from Ruth David.

(Updates with reports of other potential suitors in third paragraph)

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