Private equity firm Blackstone has acquired a majority stake in US sandwich store chain Jersey Mike’s Subs.
Jersey Mike’s founder and CEO Peter Cancro will maintain a significant equity stake and continue to lead the business.
The deal is reputedly worth US$8bn, according to news sources, including Reuters.
Jersey Mike’s has more than 3,000 locations operating and in development. Blackstone’s acquisition will help ramp up its US and international expansion.
Blackstone’s investment will also enable continued spend on technology and digital transformation.
Peter Cancro began working at the original New Jersey location at the age of 14 in 1972. He bought that business there years and began franchising in 1987.
Cancro said “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.
“Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward.”
Private equity firm invests in high-growth franchise brands
Blackstone’s previous franchise acquisitions include Hilton Hotels and the property damages restoration services business Servpro. Tropical Smoothie Cafe and 7Brew are recent investments.
Peter Wallace, a senior managing director at Blackstone, said “Jersey Mike’s has grown for more than half a century by maintaining an unrelenting focus on quality (and delicious sandwiches) – consistently building on its loyal customer base as it has scaled nationwide.
“Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes.
“We are excited to partner with an entrepreneur of Peter’s calibre and the talented Jersey Mike’s team.”
The transaction is expected to complete in early 2025 subject to the satisfaction of certain closing conditions, including applicable regulatory approvals. Blackstone’s private equity strategy for individual investors is likely to invest as part of the transaction.
