Private Equity Giant Eyes $8 Billion Deal for Jersey Mike’s
In a move that could reshape the fast-food landscape, Blackstone Inc. is nearing a massive acquisition of sandwich chain Jersey Mike’s, valued at around $8 billion including debt. According to insiders, an official announcement could come as early as this week.
A Growing Appetite for Food Service Chains
This potential deal follows a trend of private equity firms investing heavily in the food service industry. Last year, Roark Capital Group acquired Subway, Jersey Mike’s largest rival, for over $9 billion. Blackstone itself has been actively expanding its presence in the sector, with investments in 7 Brew Coffee and Tropical Smoothie Cafe earlier this year.
Driving Growth in the Fast Casual Space
The private equity giant’s growth equity investment in 7 Brew Coffee aims to accelerate the growth of the drive-thru beverage business. Meanwhile, its acquisition of Tropical Smoothie Cafe from Levine Leichtman Capital Partners marks a significant foray into the fast casual restaurant space.
A Strategic Play for Blackstone
If successful, the Jersey Mike’s deal would further solidify Blackstone’s position in the food service industry. With its substantial resources and expertise, the private equity firm is well-positioned to drive growth and expansion at Jersey Mike’s, potentially paving the way for future acquisitions.
Talks Still Ongoing
While a final agreement has not been reached, sources indicate that discussions are ongoing. However, there is still a possibility that talks could break down without a deal. Representatives from both Blackstone and Jersey Mike’s have declined to comment on the matter.
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