Goldman Sachs Joins TDR Capital’s Subway Bid
Goldman Sachs Group Inc. has joined TDR Capital LLP in a bid to acquire Subway, the world’s largest fast-food chain, according to people familiar with the matter. The move pits the two firms against Roark Capital Group, which is currently the frontrunner in the bidding process.
Subway, which is owned by Doctor’s Associates Inc., has been exploring a sale since the beginning of the year. The company has been struggling with declining sales and a shift in consumer preferences towards healthier options.
The bidding process has been ongoing for several months and has attracted interest from a number of private equity firms. Roark Capital Group has emerged as the frontrunner, but TDR Capital and Goldman Sachs have now joined forces to challenge the frontrunner.
TDR Capital and Goldman Sachs Team Up
TDR Capital is a London-based private equity firm that specializes in consumer-focused investments. The firm has a long history of investing in the restaurant industry, having previously acquired stakes in PizzaExpress, Wagamama, and Byron.
Goldman Sachs, meanwhile, is one of the world’s largest investment banks. The firm has a long history of investing in the restaurant industry, having previously invested in Shake Shack and Burger King.
The two firms have teamed up to make a joint bid for Subway. The bid is expected to be competitive with Roark Capital’s offer, and the two firms are said to be confident that they can win the bidding process.
Subway’s Struggles
Subway has been struggling in recent years, as the company has been unable to keep up with changing consumer preferences. The company has been slow to adapt to the trend towards healthier options, and its sales have suffered as a result.
The company has also been hit hard by the pandemic, as many of its locations are located in malls and other public spaces that have been closed due to the virus. The company has been forced to close hundreds of locations, and its sales have plummeted as a result.
The Bidding Process
The bidding process for Subway has been ongoing for several months, and a number of private equity firms have expressed interest in acquiring the company. Roark Capital Group has emerged as the frontrunner, but TDR Capital and Goldman Sachs have now joined forces to challenge the frontrunner.
The two firms are said to be confident that they can win the bidding process, and the outcome is expected to be determined in the coming weeks. It remains to be seen whether the joint bid from TDR Capital and Goldman Sachs will be successful, but the two firms are certainly making a strong case for themselves.
The Future of Subway
The future of Subway is uncertain, but the company is hoping that the sale process will help to turn its fortunes around. The company is hoping that the new owners will be able to help it to adapt to changing consumer preferences and to revive its sales.
Whichever firm wins the bidding process will have a big task ahead of them. Subway is a large and complex business, and the new owners will need to have a clear plan for how to turn the company around. It remains to be seen whether TDR Capital and Goldman Sachs will be successful in their bid, but the two firms certainly have the resources and experience to make a strong case for themselves.