Jersey Mike’s sandwich chain is acquired by private stake firm Blackstone for $8 billion

recent YORK — Jersey Mike’s, the quickly expanding sandwich chain, is being acquired by property management giant Blackstone.

In the swap announced Tuesday, private stake funds managed by Blackstone will be used to acquire majority ownership of Jersey Mike’s. The deal is “intended to assist enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. trade,” the companies said, as well as aid ongoing technological investments.

Blackstone and Jersey Mike’s did not immediately disclose monetary terms in their Tuesday announcement. But a source familiar with the matter confirmed to The Associated Press that the swap would worth Jersey Mike’s at around $8 billion, a figure previously reported by The Wall Street Journal.

The purchase of the private business is expected to close in early 2025, subject to regulatory approvals and other closing conditions. Under terms of the agreement, Jersey Mike’s founder and CEO Peter Cancro will continue to navigator the business and maintains a “significant stake stake” in the chain, the companies said.

“We depend we are still in the early innings of Jersey Mike’s growth narrative and that Blackstone is the correct associate to assist us reach even greater heights,” Cancro said in a prepared statement — adding that Blackstone “has helped drive the achievement of some of the most iconic franchise businesses globally.”

Jersey Mike’s roots date back to 1956, with a Point enjoyable, recent Jersey storefront location that was originally called Mike’s Subs. In 1975, Cancro, then a 17-year-ancient high school elder who had worked there since he was 14, bought the operation with the assist of his football coach.

The chain has expanded rapidly over the last decade, more than tripling its locations from 857 stores in 2014, to more than 2,800 this year, according to Technomic, a restaurant consulting business.

Jersey Mike’s posted sales of $3.3 billion in 2023, up 25% from the prior year, according to Technomic. It’s the 30th largest chain in the U.S. based on annual sales.

Its aggressive growth has helped Jersey Mike’s receive trade distribute from rivals like Subway, which has been struggling with a glut of aging stores. Last year, Subway was acquired by Roark financing, a private stake firm with expertise in restaurant management. Roark also owns Inspire Brands, which houses two other Jersey Mike’s rivals: Jimmy John’s and Arby’s.

Tuesday’s agreement with Jersey Mike’s follows a series of similar investments from Blackstone. Just earlier this year, the private stake firm acquired Tropical Smoothie Cafe in a deal that it said would also aid the chain’s expansion.