Jersey Mike’s Subs is set to be acquired by Blackstone, a major player in asset management, according to a joint announcement made on Tuesday. The deal is expected to close in early 2025 and will see private equity funds managed by Blackstone take a majority stake in the fast-growing sandwich chain, according to the companies.
The acquisition is aimed at accelerating Jersey Mike’s expansion both within and beyond the United States and to support ongoing technological investments, the companies said.
Peter Cancro, the founder and CEO of Jersey Mike’s, will continue to lead the company and retain a significant equity stake, according to the companies.
“We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” Cancro said in a prepared statement. He added, “Blackstone has helped drive the success of some of the most iconic franchise businesses globally.”
The origins of Jersey Mike’s can be traced back to 1956 when a small storefront called Mike’s Subs opened in Point Pleasant, New Jersey. In 1975, with the help of his football coach, then-17-year-old Cancro purchased the business after working there since he was 14 years old.
Over the past decade, Jersey Mike’s has grown tremendously and more than tripled its locations from 857 stores in 2014 to over 2,800 this year, according to restaurant consulting company Technomic. The sandwich chain also reported sales of $3.3 billion in 2023, a 25 percent increase from the previous year, making it the 30th largest chain in the United States based on annual sales, according to Technomic.
The rapid expansion has allowed the chain to gain market share from competitors like Subway, which has struggled lately as it faces an excess of aging stores. Last year, Subway was acquired by private equity firm Roark Capital, which specializes in restaurant management and also owns Inspire brands, which encompasses Jersey Mike’s competitors Jimmy John’s and Arby’s.
The recent acquisition of Jersey Mike’s follows a pattern of similar investments by Blackstone after the private equity firm acquired Tropical Smoothie Cafe earlier this year in a deal that was also intended to support the chain’s expansion, according to the Associated Press.
The Jersey Mike’s acquisition is subject to regulatory approvals and other closing conditions, according to the recent announcement.
The Associated Press contributed to this report.