Sandwich chain Jersey Mike’s is set to be acquired by asset management giant Blackstone.
The acquisition is made through private equity funds managed by Blackstone, with the aim to support Jersey Mike’s expansion plans within and beyond the U.S. market.
The big picture: Financial details of the transaction were not immediately disclosed. However, the Wall Street Journal reported that the acquisition values Jersey Mike’s at approximately $8 billion.
What we’re watching: The acquisition is expected to be completed by early 2025, pending regulatory approvals and closing conditions.
- Jersey Mike’s founder and CEO, Peter Cancro, will continue leading the business and retain a significant equity stake in the chain.
Driving the news: Jersey Mike’s has a long history, dating back to 1956 with a single storefront in Point Pleasant, New Jersey.
- Under Cancro’s leadership, the chain has experienced rapid growth, expanding from 857 stores in 2014 to over 2,800 locations by this year.
- In 2023, Jersey Mike’s posted sales of $3.3 billion, marking a 25% increase from the previous year.
- The chain currently ranks as the 30th largest in the U.S. based on annual sales, showcasing its significant market presence.
Zoom out: Jersey Mike’s aggressive growth has allowed it to gain market share from competitors like Subway.
- Subway, facing challenges with aging stores, was acquired by Roark Capital last year, which also owns other Jersey Mike’s competitors, such as Jimmy John’s and Arby’s.
