Jersey Mike's nears acquisition by Blackstone in $8 billion deal
Deal News | Nov 19, 2024 | Zawya
Buyout firm Blackstone is reportedly near securing a deal to acquire Jersey Mike's Subs, a prominent U.S. sandwich franchise, for approximately $8 billion inclusive of debt. This transaction could be publicly announced by the end of the week, according to sources familiar with the matter. While neither Blackstone nor Jersey Mike's have commented, the report initially surfaced in The Wall Street Journal. Jersey Mike's manages over 2,800 franchise locations and would become the latest addition to Blackstone's portfolio, which already includes franchise names such as the Tropical Smoothie Cafe. Historically, Blackstone has also acquired Hilton Hotels and invested in Servpro. The interest of private equity firms in franchise operations is rising, evidenced by Roark Capital's acquisition of Subway, valuing the chain at up to $9.55 billion.
Sectors
- Private Equity
- Franchise Food Industry
Geography
- United States – Jersey Mike's Subs is a U.S.-based sandwich franchise chain, and Blackstone is a major private equity firm operating in the U.S.
- Bengaluru – Part of the reporting team for Reuters involved in this news is located in Bengaluru, contributing to the geographical context of the article.
Industry
- Private Equity – The article discusses Blackstone, a private equity firm, acquiring Jersey Mike's Subs, a major transaction implicating the private equity industry.
- Franchise Food Industry – Jersey Mike's Subs, a prevalent franchise food chain with over 2,800 locations, is the target company being acquired in the discussed deal.
Financials
- $8 billion – The estimated valuation of Jersey Mike's Subs, including debt, in the deal with Blackstone.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Blackstone | Bidding Company | Company | A leading global private equity firm acquiring Jersey Mike's Subs. |
| Jersey Mike's Subs | Target Company | Company | A fast casual sub sandwich franchise operating over 2,800 locations in the U.S. |
| Roark Capital | Other Company | Company | A private equity firm that purchased another U.S. sandwich chain, Subway. |