KEY TAKEAWAYS
* Blackstone has bought control of Jersey Mike’s Subs, in the latest move by the private equity giant to buy franchisors.
* Blackstone didn’t give a deal amount, but The Wall Street Journal, which reported the transaction first, said the purchase values the sandwich chain at around $8 billion, including debt.
* Blackstone said the sandwich chain's CEO and founder Peter Cancro will keep a stake in the business
Blackstone (BX) has bought control of Jersey Mike’s Subs, in the latest move by the private equity giant to buy franchisors.
Blackstone said Tuesday that it had acquired a majority ownership position in Jersey Mike’s, with the sandwich chain's founder and Chief Executive Officer (CEO) Peter Cancro keeping a "significant equity stake" and continuing to lead the business. It didn't give a deal size but The Wall Street Journal, which reported the transaction first, said the purchase values the sandwich chain at around $8 billion, including debt.
"The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, as well as its continued investment in technology and digital transformation," Blackstone said.
New Jersey Sandwich Chain Has Over 3,000 Locations in the US
The Manasquan, N.J.-based sandwich chain, which has more than 3,000 locations in the U.S., is one of the fastest-growing fast-casual restaurant chains in America, Blackstone said.
The private equity firm has a long history of buying franchisors. Its investments include Hilton Hotels, cleaning- and emergency-restoration services provider Servpro Industries, Atlanta-based Tropical Smoothie Cafe and coffee brand 7Brew.
Blackstone’s initial public offering (IPO) in 2013 of Hilton Hotels, which it acquired at the height of the real estate bubble in 2007, is the most profitable private equity deal ever.
Blackstone shares are rising 0.05% in premarket trading and have gained 40% this year.
* Blackstone has bought control of Jersey Mike’s Subs, in the latest move by the private equity giant to buy franchisors.
* Blackstone didn’t give a deal amount, but The Wall Street Journal, which reported the transaction first, said the purchase values the sandwich chain at around $8 billion, including debt.
* Blackstone said the sandwich chain's CEO and founder Peter Cancro will keep a stake in the business
Blackstone (BX) has bought control of Jersey Mike’s Subs, in the latest move by the private equity giant to buy franchisors.
Blackstone said Tuesday that it had acquired a majority ownership position in Jersey Mike’s, with the sandwich chain's founder and Chief Executive Officer (CEO) Peter Cancro keeping a "significant equity stake" and continuing to lead the business. It didn't give a deal size but The Wall Street Journal, which reported the transaction first, said the purchase values the sandwich chain at around $8 billion, including debt.
"The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, as well as its continued investment in technology and digital transformation," Blackstone said.
New Jersey Sandwich Chain Has Over 3,000 Locations in the US
The Manasquan, N.J.-based sandwich chain, which has more than 3,000 locations in the U.S., is one of the fastest-growing fast-casual restaurant chains in America, Blackstone said.
The private equity firm has a long history of buying franchisors. Its investments include Hilton Hotels, cleaning- and emergency-restoration services provider Servpro Industries, Atlanta-based Tropical Smoothie Cafe and coffee brand 7Brew.
Blackstone’s initial public offering (IPO) in 2013 of Hilton Hotels, which it acquired at the height of the real estate bubble in 2007, is the most profitable private equity deal ever.
Blackstone shares are rising 0.05% in premarket trading and have gained 40% this year.