Jersey Mike’s Subs on Tuesday said it entered into an agreement where Blackstone will acquire a majority ownership position in the Point Pleasant-based sandwich shop.
Terms of the deal were not disclosed.
The Wall Street Journal reported that the deal would value Jersey Mike’s at around $8 billion, including debt.
According to a news release, the transaction is “intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market,” the companies said Tuesday, as well as aid ongoing technological investments.
Under terms of the agreement, Jersey Mike’s founder and CEO Peter Cancro will continue to lead the business and maintains a “significant equity stake” in the chain.
“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,” Cancro said in a statement.
Jersey Mike’s Subs operates around 3,500 locations, with approximately 2,800 in the United States. The remaining outlets are distributed across Canada and Mexico. The chain employs over 19,000 individuals.
The transaction is expected to be completed in early 2025 subject to the satisfaction of certain closing conditions, including applicable regulatory approvals. Blackstone’s private equity strategy for individual investors is also expected to invest as part of the transaction.
