Jersey Mike's sold to Blackstone company in $8B deal
By: Manahil Ahmad
NorthJersey.com
USA Today Network - New Jersey
..... Blackstone has agreed to acquire Jersey Mike's Subs in a deal that values the sandwich chain at about $8 billion, including debt, Reuters reported.
.....
The deal, announced Tuesday, [11/19/2024] is expected to close in early 2025 and reflects growing private equity interest in franchise operators.
..... Blackstone, the world's largest alternative asset manager, with $1.1 trillion under management, has been increasingly active in the food franchise sector.
..... Jersey Mike's founder and CEO Peter Cabcro will retain an equity stake in the company and continue to lead the business.
..... Cancro said Blackstone is the ideal partner to help the change expand.
..... "We believe we are still in the early inning of Jersey mike's gorgon story and that Blackstone is the right partner to help us reach even greater heights," Cancro said in a statement.
.....
Jersey Mike's traces its origins to 1956, when Mike's Subs opened in Point Pleasant. [NJ] the company began franchising in 1987 and has since grown to over 3,000 locations nationwide, either open or under development.
..... Blackstone has made several franchise investments in recent years. Earlier this year, [2024] it acquired Tropical Smoothie Cafe and announced an equity investment in 7 Brew Coffee.
..... Its previous deals include the 2007 acquisition of Hilton Hotels and an investment in Servpro, a cleanup and remonstration franchise.
..... "Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses, and this area is one of our highest-conviction investment them," said Peter Wallace, senior managing director at Blackstone.
..... Jersey Mike's is the largest in a series of high-profile franchise deals. Last year, [2023] private equity firm Roark Capitol agreed to buy Subway, Jersey Mike's larger competitor, in a deal valued at up to $9.95 billion.