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Blackstone Is Said to Near Deal for Sandwich Chain Jersey Mike’s

PETALUMA, CALIFORNIA - APRIL 05: A sign is posted in front of a Jersey Mike's Subs shop on April 05, 2024 in Petaluma, California. Sandwich chain Jersey Mike’s Subs, the nation's second largest sandwich chain, is considering a sale of the chain that could be worth nearly $8 billion. (Photo by Justin Sullivan/Getty Images) (Justin Sullivan/Photographer: Justin Sullivan/Ge)

(Bloomberg) -- Blackstone Inc. is close to an agreement to acquire sandwich chain Jersey Mike’s for about $8 billion including debt, according to a person familiar with the matter.

A sale could be announced as soon as this week, said the person, who asked not to be identified because the discussions were private.

A final agreement hasn’t been reached and talks could still end without one, the person said.

A spokesperson for Blackstone declined to comment. A representative for Jersey Mike’s didn’t immediately respond to a request for comment. The talks were reported earlier by the Wall Street Journal.

A deal would follow 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.

This year, Blackstone has been investing in food service chains.

In February, Blackstone announced a growth equity investment in 7 Brew Coffee to help accelerate the growth 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.

©2024 Bloomberg L.P.