Subway’s $9b sale draws near: report

Private equity firm Roarke is reportedly in the lead as a buyer.

Roarke Capital could acquire Subway if the owners agreed to its term for the deal, a report by Reuters said.

The report said that the conditions, known as an earn-out, defer payment on part of the deal consideration meaning for the full price to be paid Subway’s cash flow would need to reach certain milestones over a specified period after the deal closes.

Other groups like a consortium of TDR Capital, Sycamore Partners and Goldman Sachs Group Inc's private equity arm also attached an earn-out to its offer.

The news of Subway sales hit around January with the chain estimated to be valued around $10b.