A private equity firm has decided to take a massive bite out of the sandwich chain industry by purchasing Jersey Mike's, one of the top five largest sandwich chains in the country, for a whopping $8 billion. The billion dollar price tag includes any of the sandwich chain's debts, and the deal is expected to officially close in early 2025. Jersey Mike's was founded in 1956 as a single sandwich shop in New Jersey and has since grown to almost 3,000 locations nationwide.
In fact, in 2022 it was named by QSR Magazine; the chain grew its footprint by 246 locations from 2020 to 2021. Per its website, Jersey Mike's currently has 297 new locations in the works. Blackstone, the private equity firm that has agreed to purchase Jersey Mike's, was reportedly in talks with the chain's leadership for almost three years before coming to a final agreement.
As part of this tentative agreement, Blackstone will help the brand grow both in the U.S. and internationally and will not pay the full purchase price until Jersey Mike's opens its 4,000th location.
Plus, Jersey Mike's founder and CEO, Peter Cancro, will keep a large stake in the business and continue to run it as CEO. While Blackstone will not be in charge of operations of Jersey Mike's, this is not the firm's first venture into food. Earlier this year the firm invested in 7 Brew Coffee, a drive-thru beverage business, and purchased Tropical Smoothie Cafe, another franchise of restaurants.
This also isn't the only private equity firm looki.
