DENVER — Quiznos Master LLC, the operator or franchisor of more than 4,500 Quiznos Sub locations worldwide, said Monday that J.P. Morgan Partners LLC would become a "significant ownership partner" in the company. Specific terms of the transaction were not disclosed in the March 20 joint statement from Quiznos and New York-based J.P. Morgan Partners, the private equity division of J.P. Morgan Chase & Co. A spokeswoman for Quiznos said no details on the transaction would be given.
Late last year, Quiznos put itself up for sale and reportedly asked for $2 billion in an auction conducted by its financial advisor, Goldman Sachs & Co. Original suitors named in published reports were private equity firms Thomas H. Lee Partners, Blackstone Group, Madison Dearborn Partners and Apollo Management. It was reported last month that Blackstone and Thomas H. Lee, which was one of three firms that teamed up last year to buy Dunkin' Brands for $2.43 billion, had dropped out of the bidding, citing price issues.
Quiznos posted U.S. systemwide sales of $1.28 billion for the year ended Sept. 2004, the latest year available. The chain also was the second fastest-growing sandwich chain in terms of total U.S. sales year-over-year, with a 43.6 percent increase from fiscal 2003 to fiscal 2004.
