Blackstone Nears $8 Billion Deal for Jersey Mike's Subs

Private Equity Firm to Acquire Popular Sandwich Chain

Blackstone Group Inc. is nearing a deal to acquire Jersey Mike's Subs for approximately $8 billion, according to a report by the Wall Street Journal. The transaction is expected to close in the coming weeks, subject to regulatory approvals and other customary closing conditions.

Strong Demand for Sandwich Chain

Jersey Mike's Subs has experienced strong growth in recent years, driven by its popular submarine sandwiches and franchise expansion. The company has over 2,000 locations in 46 states and is known for its fresh ingredients and quick service.

Blackstone's Expansion into Food Sector

The acquisition of Jersey Mike's Subs would mark a significant expansion of Blackstone's presence in the food sector. The private equity firm has previously invested in restaurant chains such as Burger King and Red Lobster. Blackstone's investment in Jersey Mike's Subs is seen as a bet on the continued growth of the fast-casual dining segment.

Franchisee Support and Franchisee Growth

Blackstone has a strong track record of supporting franchisees and driving growth for its portfolio companies. The firm is expected to provide Jersey Mike's Subs with additional resources and expertise to accelerate its franchise expansion and enhance its operations.

Industry Consolidation

The acquisition of Jersey Mike's Subs by Blackstone is part of a broader trend of consolidation in the restaurant industry. Private equity firms have been increasingly investing in restaurant chains, seeking to capitalize on their growth potential and operational efficiency.

Other Potential Buyers

Other private equity firms and strategic buyers were reportedly interested in acquiring Jersey Mike's Subs. However, Blackstone emerged as the preferred bidder due to its strong financial position and experience in the food sector.

Expected Impact on Jersey Mike's Subs

The acquisition by Blackstone is not expected to result in any immediate changes to Jersey Mike's Subs' operations or menu. The company will continue to be led by its existing management team, and its commitment to providing high-quality sandwiches and excellent customer service remains unchanged.