The fast-growing sandwich chain, Jersey Mike’s, has been purchased by the world’s largest alternative asset manager, Blackstone.
Although the financial terms of the deal were not made public, the AP reported that the transaction would value Jersey Mike’s at around $8bn, a figure previously reported by The Wall Street Journal.
The deal is “intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the US market as well as its continued investment in technology and digital transformation”, the companies said in a press release. Under the terms of the agreement, Jersey Mike’s Founder and CEO Peter Cancro will maintain a significant equity stake and continue to lead the business.
Cancro began working at the company’s original Point Pleasant, New Jersey location at the age of 14, which was founded in 1956 as Mike’s Subs. He acquired the location in 1975 at age 17 and began franchising units in 1987. Today, Jersey Mike’s is a leading national franchisor with more than 3,000 locations nationwide.
“We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” Cancro said in the release. “Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward.”
