Blackstone Acquires Jersey Mike’s to Boost Global Expansion
NEW YORK (AP) — Jersey Mike’s, the rapidly growing sandwich chain, is being acquired by Blackstone, the asset management powerhouse, in a deal that aims to accelerate the chain’s expansion both in the U.S. and internationally.
The acquisition, announced Tuesday, will involve private equity funds managed by Blackstone taking a majority stake in Jersey Mike’s. While the financial details were not disclosed, a source familiar with the deal confirmed to the Associated Press that the transaction values the company at approximately $8 billion, as first reported by The Wall Street Journal.
The acquisition is expected to close in early 2025, pending regulatory approvals and other closing conditions. Under the agreement, Jersey Mike’s founder and CEO Peter Cancro will retain a significant equity stake and continue leading the company.
“We’re just at the beginning of Jersey Mike’s growth story,” Cancro said in a statement. “Blackstone is the ideal partner to help us achieve even greater success.” He also praised the firm’s track record in fostering the growth of iconic franchise brands globally.
A Legacy of Growth
Founded in 1956 as Mike’s Subs in Point Pleasant, New Jersey, the chain was purchased in 1975 by Cancro, who was only 17 at the time. Using financial backing from his football coach, Cancro transformed the small business into Jersey Mike’s Subs, which has since expanded aggressively.
Over the past decade, the chain has more than tripled its locations, growing from 857 stores in 2014 to over 2,800 locations worldwide in 2024. Jersey Mike’s reported $3.3 billion in sales in 2023, a 25% increase from the prior year, making it the 30th largest restaurant chain in the U.S., according to restaurant consultancy Technomic.
Market Position and Competition
Jersey Mike’s rapid expansion has been attributed to its ability to capture market share from competitors like Subway, which has struggled with aging locations and stagnant growth. In 2023, Subway was acquired by private equity firm Roark Capital, which also owns Inspire Brands, the parent company of Jimmy John’s and Arby’s, two of Jersey Mike’s key rivals.
This acquisition follows Blackstone’s recent investment strategy in the restaurant sector. Earlier this year, the firm acquired Tropical Smoothie Cafe, with similar plans to fuel its global expansion.
Jersey Mike’s and Blackstone view this partnership as an opportunity to capitalize on the chain’s impressive momentum, bolstered by continued investments in technology and market presence.
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