Fast-growing Jersey Mike’s ‘confidentially‘ files for IPO
Jersey Mike’s has taken its first step in going public.
The fast-growing sub-style sandwich chain said it has confidentially filed for an initial public offering. The announcement comes about a year and half after the the company was acquired by Blackstone. Although the financial terms of the deal were not made public, the AP reported that the transaction would value Jersey Mike's at around $8 billion.
Founded in 1975 in Point Pleasant, N.J., Jersey Mike’s is the second-largest sub-style sandwich chain in the U.S. (behind Subway), with more than 3,200 locations across North America. According to Bloomberg, the company is targeting a valuation exceeding $12 billion and aims to bring in upwards of $1 billion through the offering.
In a statement announcing the filing, Jersey Mike’s said that the number of shares to be offered and the price range for the proposed offering have not yet been determined. The offering is subject to market and other conditions and the completion of the SEC's review process.
In January, Jersey Mike’s signed a franchise agreement with JM Submarines UK LTD, led by Jersey Mike's founder and chairman of the board Peter Cancro, to open 400 stores in the United Kingdom and Ireland. The agreement marks the first European expansion for the chain.
"This marks a pivotal milestone in Jersey Mike's growth journey as we expand into the European market," said Jersey Mike’s CEO Charlie Morrison, in a statement announcing the agreement. "We could not ask for a better partner than Peter to lead this market expansion. Peter built this brand from the ground up, from our first location on the Jersey Shore to over 3,000 locations across North America during his time as CEO. We are thrilled to have Peter lead our first European expansion in what is a very exciting new chapter for the company."
