Blackstone Inc (NYSE:BX) has bought sandwich chain Jersey Mike's in a deal said to value the sandwich chain at $8 billion.
Private equity giant Blackstone announced on Tuesday that it had acquired a “majority ownership position” in Jersey Mike’s.
“The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the US,” a statement said.
Blackstone’s investment ends Jersey Mike’s almost seven-decade-long run as a privately owned business, in which time it has grown to become America’s second-largest sandwich chain behind Subway.
Peter Cancro, who has been with the company since 1971 and owned it since 1975, will remain chief executive and maintain a “significant” stake, according to Blackstone.
“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,” he said.
Blackstone did not disclose financial information of the deal, with a CNN-cited source saying it valued Jersey Mike’s at around $8 billion.
Blackstone shares climbed by 1.6% on Tuesday.