Sandwich chain Jersey Mike’s acquired for a reported $8 billion
Jersey’s Mike’s has been acquired by the world's largest alternative asset manager.
The fast-growing sandwich chain has been 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, a figure previously reported by The Wall Street Journal.
The deal is “intended 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,” the companies said in a press release. Under terms of the agreement, Jersey Mike’s founder and CEO Peter Cancro will maintain a significant equity stake and continue to lead the business.
Cancro began working at the company’s original Point Pleasant, N.J. location at the age of 14, which was founded in 1956 as Mike’s Subs. He acquired the location in 1975 at age 17 and began franchising units in 1987. Today, Jersey Mike’s is a leading national franchisor with more than 3,000 locations nationwide.
“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,” Cancro said in the release. “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.”
In April, Blackstone agreed to buy Tropical Smoothie Cafe from private equity firm Levine Leichtman Capital Partners.
“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,” stated Peter Wallace, a senior managing director at Blackstone. “Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees.”
The transaction is expected to be completed in early 2025 subject to the satisfaction of certain closing conditions, including applicable regulatory approvals. Blackstone’s private equity strategy for individual investors is also expected to invest as part of the transaction.
