Blackstone Nears Deal to Acquire Jersey Mike's, WSJ Reports
Private Equity Giant to Buy Sandwich Chain for $2 Billion
Deal Would Mark Blackstone's Latest Investment in Food and Beverage Sector
Blackstone Group Inc. is nearing a deal to acquire Jersey Mike's Subs, according to a report by the Wall Street Journal. The deal could be valued at around $2 billion, including debt. Jersey Mike's is a fast-casual sandwich chain with over 2,000 locations in the United States. The acquisition would mark Blackstone's latest investment in the food and beverage sector.
Blackstone has been actively investing in the food and beverage industry in recent years. In 2021, the firm acquired a majority stake in the restaurant chain Red Lobster. Blackstone also owns other food and beverage companies, including Sysco Corp., the largest food distributor in the United States.
The acquisition of Jersey Mike's would give Blackstone a foothold in the fast-casual sandwich market. Jersey Mike's is one of the largest fast-casual sandwich chains in the United States, with over $1 billion in annual sales. The chain is known for its fresh-sliced meats and cheeses, as well as its commitment to customer service.
The deal is expected to close in the coming weeks. Blackstone declined to comment on the report.
Implications of the Deal
The acquisition of Jersey Mike's by Blackstone could have several implications for the restaurant industry.
- Increased competition in the fast-casual sandwich market: Blackstone's acquisition of Jersey Mike's could lead to increased competition in the fast-casual sandwich market. Blackstone is likely to invest heavily in Jersey Mike's, which could give the chain a competitive advantage over its rivals.
- Continued consolidation in the restaurant industry: The acquisition of Jersey Mike's is the latest example of consolidation in the restaurant industry. Blackstone's acquisition of Red Lobster in 2021 is another example of this trend. Consolidation can lead to higher prices for consumers and reduced innovation.
- Increased investment in the food and beverage sector: Blackstone's acquisition of Jersey Mike's is a sign of the firm's continued interest in the food and beverage sector. Blackstone is likely to continue to invest in this sector in the years to come.
Conclusion
The acquisition of Jersey Mike's by Blackstone is a significant development in the restaurant industry. The deal could have several implications for the industry, including increased competition, continued consolidation, and increased investment in the food and beverage sector.
