Blackstone has agreed to acquire Jersey Mike’s Subs for $8bn, including debt.
Blackstone will assist the sandwich chain in its expansion efforts both within the US and internationally.
Go deeper with GlobalData
The transaction will be finalised in early 2025.
The acquisition follows 2023’s agreement by Roark Capital to purchase Subway for up to $9.55bn, indicating a trend of significant investments in the fast-casual dining sector.
Jersey Mike’s began in 1956 when Peter Cancro started working at the original Point Pleasant, New Jersey location known as Mike’s Subs. Jersey Mike’s now has more than 3,000 locations across the US.
Cancro, now the CEO of Jersey Mike’s, bought the store in 1975 and initiated franchising in 1987.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCancro said: “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. 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.”
The negotiations between Blackstone and Jersey Mike’s have been ongoing since 2021.
Part of the deal includes an earn-out agreement contingent on Jersey Mike’s opening its 4,000th store, as reported by Reuters.
Blackstone senior managing director Peter Wallace said: “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 calibre and the talented Jersey Mike’s team.”
Roark Capital’s acquisition of Subway also incorporates an earn-out component.
Peter Cancro will retain an equity stake in Jersey Mike’s and continue leading the company post-acquisition.
Blackstone, with more than $1.1tn in assets under management, has been actively investing in food franchises in 2024, including equity investment in 7 Brew Coffee and the purchase of Tropical Smoothie Cafe from Levine Leichtman Capital Partners.
Jersey Mike’s intends to maintain its existing debt structure and seek additional financing from lenders post-deal.
Guggenheim Securities, Morgan Stanley and White & Case provided advisory services to Jersey Mike’s, while Barclays, Bank of America and Simpson Thacher & Bartlett advised Blackstone.
