Subway has announced that it is seeking potential buyer for its privately held sandwich chain. According to a recent article in The Wall Street Journal, the deal could be worth more than $10 billion.

Founded in 1965 in Connecticut, Subway has remained privately owned and currently operates approximately 37,000 sandwich shops worldwide, including approximately 21,000 in the United States. According to market research firm Technomic, the chain's U.S. store sales reached $9.4 billion in 2021. Subway has been operating in the Czech Republic since 2004. It has 11 stores in Prague, Brno, Ostrava and Olomouc.

Subway has become one of the largest restaurant chains in the world thanks to the rapid expansion of its locations. Its global sales peaked at $18 billion in 2012, but have declined over the years since. However, last October, the sandwich chain reported that its third-quarter sales grew 8.4% compared to the same period in 2021. The company attributed the increase in sales to menu changes, restaurant renovations and improved online ordering.

A potential private equity buyout could be complicated by the current situation in the leveraged loan market, which many companies use to support their most significant transactions. Many banks have cut back on lending because they currently hold billions of dollars of debt. Private equity firms are now seeking private lenders to provide capital for transactions, but the ability of these lenders to finance large transactions is limited.

If completed, the deal would be one of the most significant acquisitions in the fast food industry since Inspire Brands bought Dunkin' for $11.3 billion in October 2020.