Blackstone Nears Deal to Acquire Jersey Mike's Subs

Private Equity Giant in Advanced Talks to Purchase Sandwich Chain

Blackstone Group Inc. is close to a deal to buy Jersey Mike's Subs, according to a person familiar with the matter. The transaction could value the sandwich chain at more than $2 billion, including debt.

The deal, which could be announced as early as this week, would mark Blackstone's latest investment in the restaurant industry. The private equity firm has been an active acquirer of food and beverage businesses, including Dunkin' Brands Group Inc. and Red Lobster.

Jersey Mike's, founded in 1956, has more than 2,000 locations in 44 states. The chain is known for its fresh-sliced meats, cheeses, and bread that are baked on-site. Jersey Mike's has been growing rapidly in recent years, with sales increasing by more than 10% in each of the past three years.

Blackstone is betting that Jersey Mike's can continue to expand its footprint and grow its sales. The private equity firm is planning to invest in new store openings and marketing initiatives.

The deal for Jersey Mike's is expected to be financed with a combination of debt and equity. Blackstone is expected to provide the majority of the equity financing, while banks will provide the debt financing.