Blackstone has agreed to shop for Jersey Mike’s Subs, the sandwich chain stated Tuesday, in a deal {that a} supply stated valued the corporate at round $8 billion, together with debt.
Reuters had reported on Monday, mentioning an individual accustomed to the subject, that Blackstone was once nearing a deal for Jersey Mike’s.
The deal, which is anticipated to near in early 2025, underscores personal fairness (PE) corporations’ expanding passion in franchise operators.
Jersey Mike’s Subs is being got by way of Blackstone for $8 billion, together with debt. Christopher Sadowski
Remaining 12 months, PE company Roark Capital agreed to shop for Subway, Jersey Mike’s larger rival, in a deal valued at as much as $9.55 billion.
Jersey Mike’s, recognized for its submarine sandwiches, strains its roots again to 1956 when Cancro set to work on the corporate’s Level Delightful, NJ., location, which was once based as Mike’s Subs.
Cancro got the site in 1975 and started franchising gadgets in 1987. Since then, Jersey Mike’s has grown into one of the vital main fast-casual eating place chains in The usa with over 3,000 places national open and in construction.
“We imagine we’re nonetheless within the early innings of Jersey Mike’s development tale and that Blackstone is the proper spouse to assist us succeed in even larger heights,” Jersey Mike’s founder and CEO Peter Cancro stated.
Cancro will deal with an fairness stake in Jersey Mike’s and proceed to guide the industry.
Jersey Mike’s, recognized for its submarine sandwiches, strains its roots again to 1956. CEO Peter Cancro, above. Getty Photographs for Highest Pals World
“Blackstone has helped force the luck of one of the most maximum iconic franchise companies globally and we sit up for operating with them to help in making important new investments going ahead,” Cancro stated.
Blackstone, the international’s greatest selection asset supervisor with greater than $1.1 trillion in property below control, has been on an making an investment spree in meals franchises this 12 months.
In February, Blackstone introduced an fairness funding in 7 Brew Espresso to spice up the growth of the drive-thru beverage industry.
Blackstone, the international’s greatest selection asset supervisor with greater than $1.1 trillion in property below control, has been on an making an investment spree in meals franchises this 12 months. AP
In April, Blackstone agreed to shop for Tropical Smoothie Cafe, a franchiser of speedy informal eating places, from PE company Levine Leichtman Capital Companions.
“Blackstone has deep revel in serving to boost up the growth of high-growth franchise companies and this house is considered one of our highest-conviction funding topics,” stated Peter Wallace, Blackstone senior managing director.
Blackstone’s earlier franchise offers come with the 2007 acquisition of Hilton Inns and its funding in Servpro, a franchise within the cleanup and emergency recovery trade.
Guggenheim Securities, Morgan Stanley, and White & Case have been the advisers to Jersey Mike’s. Barclays, Financial institution of The usa, and Simpson Thacher & Bartlett prompt Blackstone at the deal.
