Private equity giant Blackstone is to acquire Jersey Mike’s Subs in a deal that reportedly values the US sandwich chain at approximately $8bn, including debt. Founder and CEO Peter Cancro will retain a significant equity stake and continue to lead the business.
Jersey Mike’s – a fast-casual franchise specialising fresh sliced and fresh grilled sub sandwiches – operates more than 3,000 locations across the US. According to a press statement, the partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the US market, as well as its continued investment in technology and digital transformation.
The deal aligns with Blackstone’s ongoing strategy of investing in franchise-based businesses. In April, the firm agreed to acquire Tropical Smoothie Cafe, another fast-growing food franchise, while past notable investments include the 2007 purchase of Hilton Hotels and a stake in Servpro, a restoration services franchise.
Private equity interest in franchise operators has been rising. Last year, Roark Capital finalised its acquisition of Subway in a deal valued at up to $9.55bn, including debt, according to sources familiar with the matter.
