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Blackstone announced Tuesday that it will acquire sandwich chain Jersey Mike's Subs.
The asset management company said majority ownership would be purchased by a “state-of-the-art flagship private equity vehicle” and other funds it manages.
Blackstone aims to complete the acquisition early next year.
The deal values the company at about $8 billion, including debt, according to Reuters.
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According to Jersey Mike's website, the company has more than 2,800 sandwich locations, with nearly 300 others “coming soon.” (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images/Getty Images)
Blackstone said in a press release that the partnership is intended to “accelerate Jersey Mike's expansion in and beyond the U.S. market and enable continued investment in technology and digital transformation.”
Blackstone's private equity strategy for retail investors will also be involved in the sandwich chain's deal, the asset manager said.
“We are in the early stages of Jersey Mike's growth story, and we believe Blackstone is the right partner to help us reach even greater heights,” Jersey Mike's CEO Peter Cancro said in a statement. I believe that.''
Blackstone said majority ownership will be purchased by its “newest flagship private equity vehicle” and other funds it manages. (Jersey Mike)
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Blackstone said Cancro will continue to lead the sandwich chain and will continue to own a “significant stake.”
Jersey Mike's, known for its submarine sandwiches, traces its roots to 1956 when Cancro started working at the company's Point Pleasant, N.J., location and was founded as Mike's Subs.
Cancro acquired this location in 1975 and began developing franchise sites in 1987. Currently, Jersey Mike's locations span more than 2,800 sandwich shops, with nearly 300 others “soon to open,” according to the company's website.
A sign in front of a Jersey Mike's Subs store on April 5, 2024 in Petaluma, California. (Justin Sullivan/Getty Images/Getty Images)
Blackstone's recent franchise investments include Tropical Smoothie Cafe and 7 Brew Coffee.
“Blackstone has deep experience helping high-growth franchise businesses accelerate their expansion, and this sector is one of our most confident investment themes,” Peter Wallace, senior managing director at Blackstone, said in a statement. “It's one,” he said.
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Other companies are also entering the space. Subway, one of Jersey Mike's competitors, was acquired by Roark Capital in a deal that closed earlier this year.
The average selling price for a traditional Jersey Mike's store is $1.3 million, according to the chain's website.
Reuters contributed to this report
