Blackstone Acquires Majority Stake in Jersey Mike’s Subs for $8 Billion

Blackstone, one of the world’s largest private equity firms, has announced its acquisition of a majority stake in Jersey Mike’s Subs, valuing the franchisor at $8 billion. The deal, revealed on Tuesday, is part of Blackstone’s strategy to invest in high-growth franchise businesses and support Jersey Mike’s plans for international expansion and accelerated growth in the U.S.

Jersey Mike’s, founded in 1956 as Mike’s Subs in Point Pleasant, New Jersey, has grown to become one of the nation’s largest sandwich chains with over 3,000 locations. The company has seen significant growth, opening 1,000 new U.S. locations over the past five years and recently announcing its first international expansion with plans for 300 stores in Canada.

The acquisition is expected to close in early 2025, pending regulatory approvals. Peter Cancro, the founder and CEO of Jersey Mike’s, will maintain a significant equity stake and continue to lead the business. Blackstone’s investment aims to enhance Jersey Mike’s expansion across and beyond the U.S., as well as its investment in technology and digital transformation.

This deal aligns with Blackstone’s history of successful franchise investments, including Tropical Smoothie Cafe, Hilton Hotels, and Servpro. Blackstone’s private equity strategy for individual investors will also be involved in the transaction.

The acquisition underscores the growing appeal of franchised restaurant chains to investors seeking scalable business models with strong consumer loyalty. This move follows other significant private equity deals in the restaurant sector, such as Roark Capital’s acquisition of Subway earlier this year).