Jersey Mike's Partners with Blackstone in $8 Billion Deal to Drive Growth

WALL STREET, NY — Jersey Mike's, the fast-growing submarine sandwich chain, has agreed to sell a majority stake to private equity firm Blackstone in a deal valued at approximately $8 billion. The transaction, announced Tuesday, is expected to close in early 2025, subject to regulatory approvals.

Under the terms of the agreement, Jersey Mike's Founder and CEO Peter Cancro will retain a significant equity stake and continue to lead the business.

In a statement, Cancro said, "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."

The acquisition is intended to accelerate Jersey Mike's expansion both within and beyond the United States, and support ongoing investments in technology and digital transformation.

Growth and expansion

Peter Wallace, a senior managing director at Blackstone, expressed enthusiasm for the partnership in a statement: "Jersey Mike's has grown for more than half a century by maintaining an unrelenting focus on quality. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike's customers and exceptional franchisees.”

Jersey Mike's has experienced rapid growth in recent years, with system sales increasing an average of 24% over the past five years. The chain currently operates nearly 3,000 locations nationwide, with plans for international expansion in Canada and Europe.

The deal marks another significant investment in the restaurant industry for Blackstone, which previously acquired Tropical Smoothie Café and has invested in the drive-thru coffee chain Brew.

Deal and investment

Guggenheim Securities and Morgan Stanley are acting as financial advisors to Jersey Mike's, while Barclays and Bank of America are advising Blackstone.

The acquisition of Jersey Mike's follows a trend of private equity firms investing in successful franchise businesses. In 2023, Subway, one of Jersey Mike's main competitors, was sold to Roark Capital for $9.6 billion.