$1 Trillion Private Equity Firm Blackstone Buys Majority Shareholding in Subway Competitor Jersey Mike’s Subs for $8 Billion, Founder & CEO Peter Cancro Becomes Billionaire with More than $7 Billion Fortune, Started Working at Jersey Mike’s Subs New Jersey Location in 1956 and Acquired the Location in 1975 at Age 17, Jersey Mike’s Sub Has More than 3,000 Locations
22nd November 2024 | Hong Kong
Leading private equity firm Blackstone ($1 trillion AUM) has announced to buy majority shareholding in Subway competitor Jersey Mike’s Subs for $8 billion, with founder & CEO Peter Cancro becoming a billionaire with more than $7 billion fortune. Peter Cancro started working at Jersey Mike’s Subs New Jersey (United States) location in 1956, and acquired the location in 1975 at age 17. Today, Jersey Mike’s Sub has more than 3,000 locations. Blackstone (19/11/24): “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. 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.” In 2023, private equity firm Roark Capital with $37 billion AUM (Assets under Management) announced to buy Subway for $9.55 billion if all milestones are met or $8.95 billion if milestones are not met. Subway was founded in 1965 by 2 families 17-year old Fred Deluca and Dr Peter Buck (nuclear physicist) with the first restaurant opened as Pete’s Super Submarines (United States). Subway has more than 37,000 restaurants in over 100 countries.
“ $1 Trillion Private Equity Firm Blackstone Buys Majority Shareholding in Subway Competitor Jersey Mike’s Subs for $8 Billion, Founder & CEO Peter Cancro Becomes Billionaire with More than $7 Billion Fortune, Started Working at Jersey Mike’s Subs New Jersey Location in 1956 and Acquired the Location in 1975 at Age 17, Jersey Mike’s Sub Has More than 3,000 Locations “
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.”
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.
$37 Billion Private Equity Firm Roark Capital to Buy Subway for $9.55 Billion if All Milestones are Met or $8.95 Billion if Milestones are Not Met, Subway Founded in 1965 with $1,000 by 2 Families 17-Year Old Fred DeLuca and Nuclear Physicist Dr Peter Buck with First Restaurant Opened as Pete’s Super Submarines
25th August 2023 – Private equity firm Roark Capital with $37 billion AUM (Assets under Management) has announced to buy Subway for $9.55 billion if all milestones are met or $8.95 billion if milestones are not met. Subway was founded in 1965 by 2 families 17-year old Fred Deluca and Dr Peter Buck (nuclear physicist) with the first restaurant opened as Pete’s Super Submarines (United States). Subway has more than 37,000 restaurants in over 100 countries. History – The Subway® story began in 1965 when 17-year-old Fred DeLuca asked his family friend, Dr. Peter Buck, a nuclear physicist, for advice on how to pay his college tuition. With an idea to open a submarine sandwich shop and an initial $1,000 investment from Dr. Buck, the two formed a business partnership that would ultimately change the landscape of the quick service restaurant industry. The partners opened their first restaurant in Bridgeport, Connecticut, in August of 1965, where they served freshly-made, customizable and affordable sandwiches to local guests. By 1974, Fred and Dr. Buck owned and operated 16 submarine sandwich shops throughout Connecticut. But, to take the brand even further and reach their 32-restaurant goal in time, the pair decided to begin franchising — a business model that launched the Subway® brand into a period of incredible growth and popularity. More info below:
John Chidsey, CEO of Subway: “This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world. Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees.”
$37 Billion Private Equity Firm Roark Capital to Buy Subway for $9.55 Billion if All Milestones are Met or $8.95 Billion if Milestones are Not Met
24th August 2023 – Subway today announced that it has entered into a definitive agreement to be acquired by affiliates of Roark Capital. The transaction is a major milestone in Subway’s multi-year transformation journey, combining Subway’s global presence and brand strength with Roark’s deep expertise in restaurant and franchise business models. Roark is a private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, with a specialization in franchise and franchise-like businesses, and prides itself on being a trusted partner for management and business owners.
The transaction comes on the heels of Subway announcing its 10th consecutive quarter of positive same store sales. The company will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion.
J.P. Morgan is serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Subway. Timing is subject to regulatory approvals and customary closing conditions.
About Subway® Restaurants
As one of the world’s largest quick service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of guests, across more than 100 countries in nearly 37,000 restaurants every day. Subway restaurants are owned and operated by Subway franchisees – a network that includes thousands of dedicated entrepreneurs and small business owners – who are committed to delivering the best guest experience possible in their local communities.
About Roark Capital
Roark is an Atlanta-based private equity firm with $37 billion in assets under management. Roark focuses on investments in consumer and business service companies, with a specialization on franchise and multi-location businesses in the retail, restaurant, consumer and business services sectors.
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