(Bloomberg) -- Blackstone Inc. agreed to buy a majority stake in sandwich chain Jersey Mike’s as the alternative-asset manager looks to further its investments into food services chains.
Peter Cancro, Jersey Mike’s founder and chief executive officer, will maintain a significant equity stake and continue to lead the business, according to a statement on Tuesday. A transaction is expected to close early next year. Financial terms were not disclosed. The deal could value Jersey Mike’s at about $8 billion including debt, Bloomberg News has reported.
The move follows last year’s agreement by private equity firm Roark Capital Group to buy Subway, the larger rival of Jersey Mike’s, for more than $9 billion.
In February, Blackstone announced a growth equity investment in 7 Brew Coffee to help accelerate the expansion of the drive-thru beverage business. In April, Blackstone said it had agreed to acquire Tropical Smoothie Cafe, a franchiser of fast casual restaurants, from Levine Leichtman Capital Partners.
Cancro started working at Jersey Mike’s original Point Pleasant, New Jersey location when he was 14. He acquired the location in 1975 and began franchising units in 1987. Jersey Mike’s has more than 3,000 locations open and in development across the US, according to the statement.
Guggenheim Securities LLC and Morgan Stanley were financial advisers to Jersey Mike’s, while Barclays Plc and Bank of America Corp. advised Blackstone.
(Updates throughout with official statement.)
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