Blackstone Buys Controlling Stake of Jersey Mike’s Subs in Latest Franchisor Deal | Global News Avenue

black stone (Bacchus) has acquired control of Jersey Mike’s Subs, the private equity giant’s latest move to acquire franchisees.

Blackstone said Tuesday it has acquired a majority stake in Jersey Mike’s, the sandwich chain’s founder and Chief Executive Officer (CEO) Peter Cancro retains a “substantial stake” and continues to lead the business. It doesn’t give the size of the deal, but wall street journalThe company that first reported the deal said the acquisition values ​​the sandwich chain at about $8 billion, including debt.

“The partnership with Blackstone is designed to help Jersey Mike’s accelerate its expansion within and beyond the U.S. market, as well as its continued investment in technology and digital transformation,” Blackstone said.

New Jersey sandwich chain has more than 3,000 locations in the U.S.

Blackstone said the Manasquan, New Jersey-based sandwich chain has more than 3,000 locations in the United States and is one of the fastest-growing fast-casual restaurant chains in the country.

The private equity firm has a long history of acquiring franchisors. Its investments include Hilton hotels, cleaning and emergency recovery services provider Servpro Industries, Atlanta-based Tropical Smoothie Cafe and coffee brand 7Brew.

Blackstone Initial Public Offering (IPO) In 2013, the Hilton Hotel was acquired during the peak period of real estate bubble In 2007, it was most profitable Private equity deal of all time.

Blackstone shares rose 1% in pre-market trading and are up 40% this year.