Blackstone Buying Majority Stake In Jersey Mike's Subs At $8B Valuation
One of the world's largest private equity firms has jumped into the sandwich game with a major investment in Jersey Mike's Subs.
Blackstone has reached a deal to become the majority stakeholder in the New Jersey-based sub shop franchisor, the investment firm announced Tuesday. The partnership will allow Jersey Mike's to "accelerate its expansion across and beyond the U.S. market."
The deal values the sandwich chain at around $8B and is expected to be finalized in early 2025, The Wall Street Journal reported.
The company is one of the largest sandwich chains in the country by sales and has 3,000 locations nationwide.
"Jersey Mike’s has grown for more than half a century by maintaining an unrelenting focus on quality (and delicious sandwiches) – consistently building on its loyal customer base as it has scaled nationwide," Blackstone Senior Managing Director Peter Wallace said in a statement.
In August, Jersey Mike's announced it was embarking on its first international expansion, targeting 300 stores in Canada over the next couple of years, Entrepreneur reported. The franchisor has also opened 1,000 stores in the U.S. over the last five years.
Blackstone has had success investing in franchise businesses and expanding their footprints.
The firm's 2007 investment in hotel franchisor Hilton Hotels, which it sold in 2018, was the most profitable private equity real estate investment ever, according to the WSJ.
Blackstone has also bought into Servpro and 7Brew. In August, the firm acquired Tropical Smoothie Cafe for nearly $2B, including assuming the smoothie company's debt.
