Jersey Mike’s to Partner with Blackstone to Accelerate Leading Franchisor’s Continued Growth
19 Novembro 2024 - 9:00AM
Business Wire
Jersey Mike’s Subs, a leading franchisor of fast-casual
submarine sandwich stores known for its fresh sliced and fresh
grilled subs, announced today it has reached an agreement whereby
private equity funds managed by Blackstone (“Blackstone”) – led by
Blackstone’s most recent flagship private equity vehicle – will
acquire a majority ownership position in Jersey Mike’s.
Jersey Mike’s Founder and CEO Peter 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, as well as its continued investment in technology and
digital transformation. Blackstone has a long history of
successfully propelling the growth of leading franchisors,
including in its previous acquisitions of Hilton Hotels and SERVPRO
– and has also recently invested in Tropical Smoothie Cafe and
7Brew.
Cancro began working at the company’s original Point Pleasant,
New Jersey location at the age of 14, which was founded in 1956 as
Mike’s Subs. He acquired the location in 1975 at age 17 and began
franchising units in 1987. Today, Jersey Mike’s is a premier
national franchisor with more than 3,000 locations nationwide open
and in development, and continues to be recognized for its
high-quality and freshly prepared submarine sandwiches, and passion
for its authentic products and customers. The company has been
recognized as one of the fastest-growing fast-casual restaurant
chains in America and ranked #2 on Entrepreneur's 2024 Franchise
500.
Peter Cancro, Jersey Mike’s Founder and CEO, said: “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.”
Peter Wallace, a Senior Managing Director at Blackstone, said:
“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. I
highly recommend the #13 Original Italian, Mike’s Way.”
Giving back is also core to Jersey Mike’s mission. The company
recently completed its 14th Annual Month of Giving, surpassing over
$113 million raised for local charities since 2011. It has also
launched the Coach Rod Smith Ownership program, which helps provide
store-level managers greater opportunities to become Jersey Mike’s
franchise owners.
The transaction is expected to be completed in early 2025
subject to the satisfaction of 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.
About Jersey Mike’s
Jersey Mike's Subs, with more than 3,000 locations open and in
development, serves authentic fresh sliced/fresh grilled subs on
in-store freshly baked bread — the same recipe it started with in
1956. Passion for giving in Jersey Mike's local communities is
reflected in its mission statement "Giving…making a difference in
someone's life." For more information, please visit
jerseymikes.com.
About Blackstone
Blackstone is the world’s largest alternative asset manager. We
seek to deliver compelling returns for institutional and individual
investors by strengthening the companies in which we invest. Our
more than $1.1 trillion in assets under management include global
investment strategies focused on real estate, private equity,
infrastructure, life sciences, growth equity, credit, real assets,
secondaries and hedge funds. Further information is available at
www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter),
and Instagram.
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version on businesswire.com: https://www.businesswire.com/news/home/20241118982737/en/
For Blackstone: Matt Anderson matthew.anderson@blackstone.com
(518) 248-7310
For Jersey Mike’s Kyle Potvin kpotvin@splashllc.com (917)
838-4500
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