Blackstone to acquire Jersey Mike’s Subs in $8B deal

Blackstone has agreed to acquire Jersey Mike’s Subs for approximately $8 billion, including debt, the sandwich chain announced on Tuesday. The deal is set to close in early 2025.

The acquisition highlights the growing interest of private equity firms in franchise businesses. Roark Capital bought Subway last year for $9.6 billion.

CEO Peter Cancro will maintain an equity stake and continue to lead the company, which generated  $3.3 billion in sales last year. The new deal increases his net worth to $7 billion.

Founded in 1956, Jersey Mike’s began as Mike’s Subs in Point Pleasant, NJ, before its acquisition by Cancro in 1975.

He started franchising the business in 1987, and it has since grown into a major fast-casual chain with over 3,000 locations across the US. It is the second largest US sandwich chain after Subway.

Blackstone, the world’s largest alternative asset manager with over $1.1 trillion in assets, has been ramping up its investments in the food franchise sector this year, including deals with Tropical Smoothie Cafe and 7 Brew Coffee.

Blackstone’s deep experience scaling high-growth franchises is seen as a key factor in Jersey Mike’s continued expansion. The firm’s past acquisitions include Hilton Hotels and restoration company Servpro.