Blackstone to acquire majority stake in sandwich chain Jersey Mike's Subs

(Reuters) -Private equity firm Blackstone (NYSE:BX ) will acquire a majority stake in Jersey Mike's Subs, the sandwich chain said on Tuesday.

Reuters had reported on Monday that Blackstone was nearing a deal for Jersey Mike's at around $8 billion, including debt.

Jersey Mike's Sub, a fast casual sub sandwich franchise, operates over 2,800 locations.

Private equity firms have shown increasing interest in franchise operators. Last year, Roark Capital agreed to buy Subway, in a deal that people familiar with the matter told Reuters said valued the U.S. sandwich chain at up to $9.55 billion, including debt.

In April, Blackstone agreed to buy Tropical Smoothie Cafe, marking its latest investment in a franchise business.

Blackstone's previous franchise deals include the 2007 acquisition of Hilton Hotels and its investment in Servpro, a franchise in the cleanup and emergency restoration industry.



Jersey Mike’s founder and CEO Peter Cancro will maintain an equity stake in the company and continue to lead the business.

The deal is expected to close in early 2025.

Source: Investing.com