NEW YORK (AP) — The rapidly growing sandwich chain, Jersey Mike’s, is set to be acquired by the renowned asset management firm, Blackstone. The announcement of this acquisition took place on Tuesday.
According to the companies involved, private equity funds managed by Blackstone will take majority ownership of Jersey Mike’s. This partnership is expected to propel Jersey Mike’s expansion not only within the U.S. but also into international markets, while also supporting ongoing technological advancements for the chain.
The financial specifics of the deal were not disclosed immediately. However, a source familiar with the negotiations revealed to The Associated Press that Jersey Mike’s is valued at approximately $8 billion, a figure that aligns with earlier reports by The Wall Street Journal.
Under the arrangement, Jersey Mike’s founder and CEO, Peter Cancro, will remain at the helm of the company, retaining a “significant equity stake” in the business. The transaction is anticipated to finalize in early 2025, contingent on regulatory approvals and other closing requirements.
The origins of Jersey Mike’s trace back to 1956, when it first opened as Mike’s Subs in Point Pleasant, New Jersey. In 1975, a young Peter Cancro, then a 17-year-old working there since he was 14, purchased the business with financial support from his football coach.
Over the last decade, Jersey Mike’s has experienced explosive growth, more than tripling its number of locations from 857 stores in 2014 to over 2,800 in 2023, according to the restaurant consulting firm Technomic. In fact, Jersey Mike’s reported sales of $3.3 billion in 2023, marking a 25% increase from the previous year, positioning it as the 30th largest chain in the U.S. based on annual sales.
This aggressive expansion strategy has enabled Jersey Mike’s to gain market share from competitors like Subway, who continues to face challenges due to an excess of aging locations. Last year, Subway was purchased by Roark Capital, a private equity firm with a strong background in restaurant management. Roark also owns Inspire Brands, which includes Jimmy John’s and Arby’s, both of which compete with Jersey Mike’s.
This agreement with Jersey Mike’s falls in line with Blackstone’s trend of making strategic investments in the food industry. Earlier this year, the firm completed the acquisition of Tropical Smoothie Cafe to support its growth efforts as well.
