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Blackstone introduced Tuesday it would purchase sandwich chain Jersey Mike’s Subs.
The asset administration agency mentioned the bulk possession stake will likely be bought by its “most recent flagship private equity vehicle” and different funds it manages.
Blackstone goals to finish the acquisition early subsequent yr.
Reuters reported that the deal values the corporate at round $8 billion, together with debt.
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Jersey Mike’s footprint spans over 2,800 sandwich retailers, with almost 300 others “coming soon,” in keeping with its web site. ( Don and Melinda Crawford/UCG/Common Photos Group through Getty Photos / Getty Photos)
Blackstone mentioned in a press launch that the partnership is meant to “help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, as well as its continued investment in technology and digital transformation.”
Blackstone’s non-public fairness technique for particular person buyers may also be concerned within the deal for the sandwich chain, in keeping with the asset administration agency.
“We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” Jersey Mike’s CEO Peter Cancro mentioned in an announcement.
Blackstone mentioned the bulk possession stake will likely be bought by its “most recent flagship private equity vehicle” and different funds it manages. (Jersey Mike’s)
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Cancro will proceed main the sandwich chain and can preserve a “significant equity stake,” in keeping with Blackstone.
Jersey Mike’s, identified for its submarine sandwiches, traces its roots to 1956, when Cancro began working on the firm’s Level Nice, New Jersey, location, which was based as Mike’s Subs.
Cancro acquired the situation in 1975 and started franchising websites in 1987. Right this moment, Jersey Mike’s footprint spans over 2,800 sandwich retailers, with almost 300 others “coming soon,” in keeping with the corporate’s web site.
An indication i in entrance of a Jersey Mike’s Subs store April 5, 2024, in Petaluma, Calif. (Justin Sullivan/Getty Photos / Getty Photos)
Some current franchise investments that Blackstone has made embrace Tropical Smoothie Cafe and seven Brew Espresso.
“Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses, and this area is one of our highest-conviction investment themes,” Peter Wallace, Blackstone’s senior managing director, mentioned in an announcement.
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Different corporations have additionally made strikes within the area. Considered one of Jersey Mike’s opponents, Subway, was purchased by Roark Capital in a deal that closed earlier this yr.
For conventional Jersey Mike’s places, the common unit quantity is $1.3 million, in keeping with the chain’s web site.
Reuters contributed to this report
