Private equity firm Blackstone (BX.N), opens new tab will acquire a majority stake in Jersey Mike's Subs, the sandwich chain said on Tuesday. Reuters had reported on Monday that Blackstone was nearing a deal for Jersey Mike's at around $8 billion, including debt. Jersey Mike's Sub, a fast casual sub sandwich franchise, operates over 2,800 locations.
Private equity firms have shown increasing interest in franchise operators. Last year, Roark Capital agreed to buy Subway, in a deal that people familiar with the matter told Reuters said valued the U.S. sandwich chain at up to $9.55 billion, including debt.
In April, Blackstone agreed to buy Tropical Smoothie Cafe, marking its latest investment in a franchise business. Blackstone's previous franchise deals include the 2007 acquisition of Hilton Hotels and its investment in Servpro, a franchise in the cleanup and emergency restoration industry.
Jersey Mike’s founder and CEO Peter Cancro will maintain an equity stake in the company and continue to lead the business.
