Blackstone acquisition
Pexels.com/Alesia Kozik

U.S. private equity firm Blackstone is reportedly nearing a deal to acquire Jersey Mike's Subs, which could give the sandwich chain a valuation of around $8 billion, including its debt.

The announcement about the same can be made as early as this week, The Wall Street Journal reported, citing people familiar with the matter.

While discussions about the acquisition have been on-off since earlier this year, the companies have now apparently reached an advanced stage in the negotiation process.

Jersey Mike's Subs operates around 3,500 locations, with approximately 2,800 in the United States. The remaining outlets are distributed across Canada and Mexico. The chain emplys over 19,000 individuals.

If the acquisition proceeds, the U.S. sandwich chain would join a growing portfolio of businesses acquired by Blackstone in recent months.

In April, Blackstone reached a deal to buy Tropical Smoothie Cafe, valuing the restaurant chain at $2 billion. The business has more than 1,400 locations spread across 44 states.

The move came after it was revealed that Levine Leichtman Capital Partners, the private equity owner of Tropical Smoothie, was readying to put the chain up for sale for around $2 billion.

Tropical Smoothie Cafe ended the first quarter of 2024 with the successful launch of new core menu items, a strategic brand partnership, new openings, and franchise agreements, along with continued positive same-store sales.

The launch of new menu items helped boost overall sales, which were above the industry average in Q1, with Tropic Bowls aiding in a positive increase in same-store sales.

Recently, Blackstone was also reported to be in advanced negotiations to acquire Retail Opportunity Investments Corp. It has a market valuation of $3.4 billion, including its debt.

ROIC, headquartered in San Diego, California, operates 93 shopping centers that cover approximately 10.5 million square feet. In October, ROIC reported a huge increase in net income, recording $32.1 million for the quarter ending Sept. 30, marking an increase from $8.4 million during the same quarter the previous year.

Blackstone previously acquired Hilton Hotels in 2007 and made an investment in Servpro, a franchise in the cleanup and emergency restoration industry.