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Blackstone introduced Tuesday it can purchase sandwich chain Jersey Mike’s Subs.
The asset administration agency mentioned the bulk possession stake will probably be bought by its “most up-to-date flagship personal fairness car” and different funds it manages.
Blackstone goals to finish the acquisition early subsequent 12 months.
Reuters reported that the deal values the corporate at round $8 billion, together with debt.
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Jersey Mike’s footprint spans over 2,800 sandwich outlets, with almost 300 others “coming quickly,” in keeping with its web site. ( Don and Melinda Crawford/UCG/Common Photos Group by way of Getty Photos / Getty Photos)
Blackstone mentioned in a press launch that the partnership is meant to “assist allow Jersey Mike’s to speed up its enlargement throughout and past the U.S. market, in addition to its continued funding in know-how and digital transformation.”
Blackstone’s personal fairness technique for particular person traders may also be concerned within the deal for the sandwich chain, in keeping with the asset administration agency.
“We consider we’re nonetheless within the early innings of Jersey Mike’s development story and that Blackstone is the suitable companion to assist us attain even higher heights,” Jersey Mike’s CEO Peter Cancro mentioned in a press release.
Blackstone mentioned the bulk possession stake will probably be bought by its “most up-to-date flagship personal fairness car” and different funds it manages. (Jersey Mike’s)
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Cancro will proceed main the sandwich chain and can hold a “vital fairness stake,” in keeping with Blackstone.
Jersey Mike’s, identified for its submarine sandwiches, traces its roots to 1956, when Cancro began working on the firm’s Level Nice, New Jersey, location, which was based as Mike’s Subs.
Cancro acquired the placement in 1975 and commenced franchising websites in 1987. At this time, Jersey Mike’s footprint spans over 2,800 sandwich outlets, with almost 300 others “coming quickly,” in keeping with the corporate’s web site.
An indication i in entrance of a Jersey Mike’s Subs store April 5, 2024, in Petaluma, Calif. (Justin Sullivan/Getty Photos / Getty Photos)
Some latest franchise investments that Blackstone has made embrace Tropical Smoothie Cafe and seven Brew Espresso.
“Blackstone has deep expertise serving to speed up the enlargement of high-growth franchise companies, and this space is considered one of our highest-conviction funding themes,” Peter Wallace, Blackstone’s senior managing director, mentioned in a press release.
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Different companies have additionally made strikes within the area. One in every of Jersey Mike’s rivals, Subway, was purchased by Roark Capital in a deal that closed earlier this 12 months.
For conventional Jersey Mike’s areas, the typical unit quantity is $1.3 million, in keeping with the chain’s web site.
Reuters contributed to this report
