The New York City-based investment firm Blackstone (NYSE:BK) has announced its acquisition of a majority ownership stake in Jersey Mike’s Subs, a franchisor of fast-casual submarine sandwich stores.
The financial terms of the transaction were not disclosed, although Reuters reported from an unnamed source that the acquired company was valued at $8 billion.
Jersey Mike’s Subs has more than 3,000 locations nationwide that are open and in development. According to the companies, Jersey Mike’s Founder and CEO Peter Cancro will “maintain a significant equity stake and continue to lead the business” while Blackstone will help the chain “accelerate its expansion across and beyond the US market, as well as its continued investment in technology and digital transformation.”
“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,” said Cancro. “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.”
Peter Wallace, a senior managing director at Blackstone, added, “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. Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes. We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees. I highly recommend the #13 Original Italian, Mike’s Way.”
Photo courtesy of Jersey Mike’s Subs
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