Blackstone Acquires Jersey Mike’s Subs in $8 Billion Deal

NEW YORK, NY — Blackstone announced Tuesday that it will acquire a majority stake in Jersey Mike’s Subs in a deal valued at around $8 billion. The acquisition will accelerate the sandwich chain’s expansion in the U.S. and internationally and support its investment in technology and digital initiatives.

The deal will be funded through Blackstone's private equity funds and is expected to close in early 2025, pending approval. Blackstone did not disclose further financial details, but a source confirmed the $8 billion valuation.

Peter Cancro, CEO and founder of Jersey Mike’s will remain in charge of the company and retain a significant equity stake. “We believe we are still in the early innings of Jersey Mike’s growth story, and Blackstone is the right partner to help us reach even greater heights,” Cancro said.

Jersey Mike’s, which started as Mike’s Subs in Point Pleasant, New Jersey, in 1956, now operates over 2,800 locations across the U.S. The chain has grown rapidly, tripling its store count from 857 locations in 2014 to more than 2,800 in 2023. The company posted $3.3 billion in sales for 2023, a 25% increase from the previous year.

Blackstone has a history of investing in franchise businesses, including recent acquisitions like Tropical Smoothie Cafe. “This area is one of our highest-conviction investment themes,” said Peter Wallace, Blackstone’s senior managing director.

The acquisition of Jersey Mike’s is part of a broader trend of private equity firms targeting high-growth restaurant chains. Roark Capital acquired Subway, one of Jersey Mike’s competitors, earlier this year.