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

The deal is said to value the company at more than $3 billion

Blackstone Inc. is nearing a deal to acquire Jersey Mike’s Franchise Systems Inc., according to people familiar with the matter. A transaction could be announced as soon as this week, said the people, who asked not to be identified because the discussions are private. The deal is said to value the company at more than $3 billion. The transaction would add to a wave of consolidation in the restaurant industry, as private-equity firms and other investors seek to capitalize on the sector’s resilience during the pandemic.

Discussions are ongoing and could still fall apart, the people said. Representatives for Blackstone and Jersey Mike’s didn’t immediately respond to requests for comment.

Blackstone has been looking to expand its footprint in the restaurant industry

Blackstone has been an active investor in the restaurant sector, having acquired companies such as Ruth’s Hospitality Group Inc. and Red Lobster in recent years. Jersey Mike’s, founded in 1956, has more than 2,000 locations across the U.S. The company has been growing rapidly in recent years, with sales rising by more than 50% since 2019. Jersey Mike’s is known for its submarine sandwiches, which are made with fresh-sliced meats and cheeses. The company also offers a variety of other menu items, such as salads, soups, and wraps.

The restaurant industry has been consolidating in recent years

The restaurant industry has seen wave of consolidation in recent years, as private-equity firms and other investors look to capitalize on the sector’s resilience during the pandemic. Other recent deals include the acquisition of Panera Bread by JAB Holding Co. and the sale of Popeyes Louisiana Kitchen to Restaurant Brands International Inc.

The Blackstone-Jersey Mike’s deal is the latest example of this trend. If completed, it would give Blackstone a major foothold in the fast-casual dining sector. Jersey Mike’s is one of the fastest-growing restaurant chains in the U.S., and its acquisition would give Blackstone a significant presence in the market.