Blackstone Closing in on Deal to Buy Jersey Mike's

Potential $2 Billion Deal to Bolster Blackstone's Restaurant Portfolio

Private equity giant Blackstone is reportedly close to acquiring Jersey Mike's, a popular submarine sandwich chain, in a deal that could be valued at around $2 billion. The Wall Street Journal reported that the transaction, which could be announced as early as this week, would give Blackstone a significant presence in the fast-casual dining sector. Jersey Mike's, known for its fresh ingredients and grilled subs, has over 2,000 locations across the United States.

Blackstone's Restaurant Ambitions

The potential acquisition of Jersey Mike's aligns with Blackstone's strategy of investing in restaurant chains. In recent years, the firm has acquired several restaurant brands, including Chuck E. Cheese, Red Lobster, and TGI Fridays. Blackstone sees the restaurant industry as an attractive investment opportunity due to its resilience during economic downturns and its potential for growth.

Jersey Mike's Growth Potential

Founded in 1956, Jersey Mike's has grown rapidly in recent years, with its revenue increasing by over 50% in the past five years. The chain has benefited from the growing popularity of fast-casual dining, which offers a more upscale experience than traditional fast food restaurants. Jersey Mike's has also invested in digital ordering and delivery services, which have helped to drive sales during the COVID-19 pandemic.

Deal Impact on Jersey Mike's

It is unclear how the acquisition by Blackstone will impact Jersey Mike's operations. However, Blackstone has a history of investing in its acquired brands, providing them with resources to expand and improve their offerings. Jersey Mike's could benefit from Blackstone's expertise in restaurant management and its access to capital for growth initiatives.