Private equity giant Blackstone will acquire a majority ownership position in Jersey Mike’s, the fast-growing sub shop purchased by Peter Cancro in 1975. Terms of the deal were not disclosed.
Cancro will maintain a significant equity stake and continue to lead the business. The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, and continue its technology and digital transformation, 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. Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward,” Cancro said in a statement.
Cancro has served as chief executive officer since 1975, overseeing the brand’s growth to nearly 3,000 locations across the country. The chain totaled $3.4 billion in sales last year, a 25% increase over 2022, according to Technomic data, with 12% year-over-year unit growth. In 2019, Jersey Mike’s finished the year with 1,665 locations, illustrating its recent expansion. Indeed, the company has added than 1,000 new restaurants in the past nine years. The company is on track to reach $4 billion in sales and 3,000 units in 2024, with international expansion in Canada and Europe in the pipeline.
Cancro was named the 2024 Restaurant Leader of the Year in April during the Restaurant Leadership Conference where he noted that one of Jersey Mike’s differentiators is its annual Day of Giving – when all participating stores donate 100% of the day’s sales to a local charity of their choice. The company also prides itself on being a training company that just happens to sell sandwiches, conducting more than 5,000 classes in the field impacting nearly 35,000 employees, for instance. This focus on training ensures consistency across the system as it continues to grow, executives have noted.
Rumors about a Blackstone deal have been swirling since the spring. Addressing those rumors in April, Cancro said the company is “always for sale.”
“Jersey Mike’s has grown for more than half a century by maintaining an unrelenting focus on quality (and delicious sandwiches) – consistently building on its loyal customer base as it has scaled nationwide. Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes. We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees,” Blackstone senior managing director Peter Wallace said in a statement.
The transaction is expected to be completed in early 2025 subject to certain closing conditions, including applicable regulatory approvals. Blackstone’s private equity strategy for individual investors is also expected to invest as part of the transaction. Guggenheim Securities and Morgan Stanley & Co. LLC are acting as financial advisors and White & Case LLP served as legal counsel to Jersey Mike’s. Barclays and Bank of America are acting as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone.
Blackstone, one of the nation's largest investment firms, has also recently invested in Tropical Smoothie Cafe and 7Brew.
Contact Alicia Kelso at [email protected]
