NEW YORK – Jersey Mike’s, the growing sandwich chain, is acquired by asset management giant Blackstone.

As part of the transaction announced Tuesday, private equity funds managed by Blackstone will be used to acquire the majority stake in Jersey Mike’s. The deal “is intended to enable Jersey Mike’s to accelerate its expansion into the U.S. market and beyond,” the companies said, as well as support ongoing technology investments.

Blackstone and Jersey Mike’s did not immediately disclose financial terms in their Tuesday announcement. But a source familiar with the matter confirmed to The Associated Press that the transaction would value Jersey Mike’s at around $8 billion, a figure previously reported by the Wall Street Journal.

The acquisition of the privately held company is expected to be completed in early 2025, subject to regulatory approvals and other closing conditions. Under the terms of the deal, Jersey Mike’s founder and CEO Peter Cancro will continue to run the company and retain a “significant ownership interest” in the chain, the companies said.

“We believe we are still in the early stages of Jersey Mike’s growth story and that Blackstone is the ideal partner to help us reach even greater heights,” Cancro said in a prepared statement – adding that Blackstone “contributed to the success of some of its projects”. the most iconic franchise companies in the world.

Mike jersey the roots date back to 1956, with a store in Point Pleasant, New Jersey, originally called Mike’s Subs. In 1975, Cancro, then a 17-year-old high school student who had worked there since the age of 14, bought the farm with the help of his football coach.

The chain has grown rapidly over the past decade, more than tripling its number of stores from 857 stores in 2014 to more than 2,800 this year, according to Technomic, a restaurant consulting firm.

Jersey Mike’s reported $3.3 billion in revenue in 2023, up 25% from the previous year, according to Technomic. It is the 30th largest chain in the United States by annual sales.

Its aggressive growth has helped Jersey Mike’s take market share from competitors like Metrowhich is struggling with a glut of aging stores. Last year, Subway was acquired by Roark Capitala private equity firm specializing in restaurant management. Roark also owns Inspire Brands, which is home to two other Jersey Mike’s rivals: Jimmy John’s and Arby’s.

Tuesday’s deal with Jersey Mike’s follows a series of similar investments from Blackstone. Earlier this year, the private equity firm acquired Tropical Smoothie Cafe in a deal it said would also help expand the chain.