Stephen Schwarzman’s private equity firm Blackstone has acquired sandwich restaurant chain Jersey Mike’s Subs. The terms of the deal for the Subway rival were not released, but according to the New York Post it is valued at $8 billion.
Blackstone said Jersey Mike’s is teaming up with Blackstone to accelerate its growth and innovation. Founder and CEO Peter Cancro will remain at the helm, retaining a significant ownership stake. This strategic partnership will enable Jersey Mike’s to expand its footprint across the U.S. and into new international markets, while also investing in cutting-edge technology. Blackstone’s extensive experience in the franchising sector, demonstrated by its successful investments in brands like Hilton Hotels, SERVPRO, Tropical Smoothie Cafe, and 7Brew, positions it well to support Jersey Mike’s future success.
“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,” said Peter Cancro, Jersey Mike’s Founder and CEO. 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.”
“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 has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes,” said Peter Wallace, a Senior Managing Director at Blackstone. “We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees. I highly recommend the #13 Original Italian, Mike’s Way.”
Jersey Mike’s Subs, with more than 3,000 locations open and in development, serves authentic fresh sliced/fresh grilled subs on in-store freshly baked bread — the same recipe it started with in 1956. Passion for giving in Jersey Mike’s local communities is reflected in its mission statement “Giving…making a difference in someone’s life.”
Blackstone is an alternative asset manager with more than $1 trillion in assets under management including global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds.
