Blackstone, a US-based private equity firm, has reached an agreement to acquire Jersey Mike’s Subs, the sandwich chain announced last Tuesday. The deal, valued at approximately $8 billion including debt, is expected to close in early 2025.
Founded in 1956 as Mike’s Subs in Point Pleasant, New Jersey, Jersey Mike’s has grown to over 3,000 locations nationwide under the leadership of CEO Peter Cancro. The acquisition marks a pivotal moment for the fast-casual chain, which plans to expand further in the U.S. and internationally with Blackstone’s support to bolster it.
The deal includes an earn-out provision, tying part of the final price to Jersey Mike’s reaching its 4,000-store milestone. Such structures have become increasingly common amid a challenging market for mergers and acquisitions.
Cancro, who purchased the original Mike’s Subs at age 17 and began franchising the brand in 1987, will retain an equity stake and continue as CEO. “We believe this is just the beginning of Jersey Mike’s growth story,” Cancro said.
The acquisition underscores private equity’s rising interest in franchise operators. Blackstone, the world’s largest alternative asset manager, has been active in food franchises, recently acquiring Tropical Smoothie Cafe and investing in 7 Brew Coffee.
Jersey Mike’s will maintain its existing debt structure and seek additional funding to fuel its expansion. Blackstone intends to bolster the chain’s domestic and global footprint, enhance technology, and invest in operational efficiencies.
Advisors on the transaction included Guggenheim Securities and Morgan Stanley for Jersey Mike’s and Barclays and Bank of America for Blackstone.
The acquisition signals a new chapter for Jersey Mike’s, positioning it for sustained growth and greater market presence under Blackstone’s stewardship.
Let’s just hope the cheesesteaks remain unchanged.
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