Blackstone Nears Deal to Acquire Jersey Mike's

Fast Casual Chain Could Fetch $2 Billion-Plus

Jersey Mike's, the popular fast-casual submarine sandwich chain, is nearing a deal to be acquired by private equity giant Blackstone, according to the Wall Street Journal. The deal could value the company at more than $2 billion, people familiar with the matter told the Journal.

Up to $2.5 Billion in Value

The deal is expected to be announced in the coming days, according to the Journal. The final price could be as high as $2.5 billion, which would include the assumption of debt. Jersey Mike's has more than 2,000 locations in the United States.

Blackstone's Expansion in Fast Food

The acquisition would mark Blackstone's latest investment in the fast-food sector. The firm has previously invested in Restaurant Brands International, the parent company of Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. Blackstone also acquired Panera Bread in 2017 and sold it to JAB Holding Co. in 2021 for $8.2 billion.

Jersey Mike's Strong Sales

Jersey Mike's has been a strong performer in recent years, with sales rising during the COVID-19 pandemic. The chain has benefited from its focus on takeout and delivery, as well as its menu of customizable sandwiches

Other Potential Buyers

Blackstone was not the only potential buyer interested in Jersey Mike's. Other private equity firms, as well as restaurant companies, were also reportedly in the running. However, Blackstone is said to have prevailed due to its strong track record in the restaurant industry.

Deal Could Close Soon

The deal is expected to close in the next few weeks, according to the Journal. The acquisition would give Blackstone a major presence in the fast-casual dining segment, which has been growing in popularity in recent years.