Jersey’s Mike’s sandwich shop has been sold to a private equity firm in a deal that values the company at $8 billion.
Blackstone, one of the world’s largest private equity firms, purchased a controlling stake in the New Jersey-based company that has become one of the fastest growing fast-casual restaurants in the country.
“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,” Jersey Mike’s CEO Peter Cancro said in a statement.
Cancro, 67, will retain a significant equity stake in the company and his title as CEO. He has been part of the company since he worked there when it was a single sub shop known as Mike’s Subs in Point Pleasant, N.J. He bought it outright with help from his youth football coach in 1975, when he was just 17.
“We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team,” said Peter Wallace, a senior managing director at Blackstone. “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 has a history of purchasing companies and pursuing rapid expansion. The firm touted its previous success with Hilton Hotels and ServPro. Jersey Mike’s has been expanding significantly in the past decade, going from 857 stores in 2014 to more than 2,000 in 2024.
Earlier this year, Blackstone made a similar purchase of Tropical Smoothie Cafe, with plans to grow that company’s footprint as well.
“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.