(Bloomberg) -- TDR Capital and Sycamore Partners have brought in Goldman Sachs Group Inc.’s asset management arm and a sovereign wealth fund as they make a last-ditch effort to beat out frontrunner Roark Capital Group in the bidding for sandwich chain Subway, according to people familiar with the matter.
Final bids were submitted by private equity firm Roark and the TDR-led group on Tuesday, with a decision on the winner expected as early as tomorrow, the people said.
The identity of the sovereign wealth fund couldn’t be immediately learned.
Roark is still considered the frontrunner to acquire Subway for more than $9 billion, some of the people said, but the rival consortium is still trying to win, the people said.
The firm has lined up a slew of financing banks for as much as $5 billion in funding, with the rest in equity, and is trying to negotiate a purchase agreement, some of the people said.
The Wall Street Journal reported yesterday that Roark Capital Group was in advanced talks to acquire Subway for around $9.6 billion and is looking to finalize a sale this week. Axios then reported that the founding family hasn’t yet picked a buyer.
The situation remains fluid and no final decision has been made, the people said.
Representatives for Subway, Goldman, Sycamore and TDR declined to comment. A representative for Roark didn’t immediately respond to requests for comment.
Earlier in the process, Goldman had teamed up with private equity firm Advent International, Bloomberg News previously reported.
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 buildup their online capabilities. It’s also been grappling with stiffening competition from upstart sandwich chains such as Jersey Mike’s Subs.
--With assistance from Kamaron Leach and Aaron Kirchfeld.
(Updates with comment from Goldman, Sycamore and TDR. An earlier version of this story corrected a misspelling of Sycamore)
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