NEW YORK (AP) — Jersey Mike’s, the briefly increasing sandwich chain, is being got via asset control large Blackstone.Within the transaction introduced Tuesday, non-public fairness budget controlled via Blackstone can be used to obtain majority possession of Jersey Mike’s. The deal is “supposed to lend a hand permit Jersey Mike’s to boost up its enlargement throughout and past the U.S. marketplace,” the corporations stated, in addition to help ongoing technological investments.Blackstone and Jersey Mike’s didn’t straight away reveal monetary phrases of their Tuesday announcement. However a supply accustomed to the subject showed to The Related Press that the transaction would worth Jersey Mike’s at round $8 billion, a determine prior to now reported via The Wall Boulevard Magazine.The purchase of the non-public corporate is predicted to near in early 2025, matter to regulatory approvals and different ultimate stipulations. Beneath phrases of the settlement, Jersey Mike’s founder and CEO Peter Cancro will proceed to guide the trade and maintains a “vital fairness stake” within the chain, the corporations stated.
“We consider we’re nonetheless within the early innings of Jersey Mike’s enlargement tale and that Blackstone is the suitable spouse to lend a hand us succeed in even better heights,” Cancro stated in a ready commentary — including that Blackstone “has helped power the luck of one of the most maximum iconic franchise companies globally.”
Jersey Mike’s roots date again to 1956, with a Level Delightful, New Jersey storefront location that used to be initially known as Mike’s Subs. In 1975, Cancro, then a 17-year-old highschool senior who had labored there since he used to be 14, purchased the operation with the assistance of his soccer trainer.
The chain has expanded swiftly over the past decade, greater than tripling its places from 857 shops in 2014, to greater than 2,800 this 12 months, consistent with Technomic, a cafe consulting corporate.
Jersey Mike’s posted gross sales of $3.3 billion in 2023, up 25% from the prior 12 months, consistent with Technomic. It’s the thirtieth biggest chain within the U.S. in accordance with annual gross sales. Its competitive enlargement has helped Jersey Mike’s take marketplace percentage from competitors like Subway, which has been suffering with a glut of getting older shops. Closing 12 months, Subway used to be got via Roark Capital, a personal fairness company with experience in eating place control. Roark additionally owns Encourage Manufacturers, which homes two different Jersey Mike’s competitors: Jimmy John’s and Arby’s.Tuesday’s settlement with Jersey Mike’s follows a sequence of an identical investments from Blackstone. Simply previous this 12 months, the non-public fairness company got Tropical Smoothie Cafe in a deal that it stated would additionally help the chain’s enlargement.
