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Blackstone nears deal for Jersey Mike’s Subs, source says

(Reuters) – Buyout firm Blackstone (NYSE:BX) is nearing a deal for Jersey Mike’s Subs that would value the U.S. sandwich chain at around $8 billion, including debt, and could be announced as early as this week, a person familiar with the matter told Reuters on Monday.

The Wall Street Journal first reported the news earlier on Monday.

Blackstone and Jersey Mike’s did not immediately respond to Reuters’ request for comment.

Jersey Mike’s Sub, a fast casual sub sandwich franchise, operates over 2,800 locations.

In April, Blackstone agreed to buy Tropical Smoothie Cafe, marking its latest investment in a franchise business.

Blackstone’s previous franchise deals include the 2007 acquisition of Hilton Hotels and its investment in Servpro, a franchise in the cleanup and emergency restoration industry.

Private equity firms have shown increasing interest in franchise operators. Last year, Roark Capital agreed to buy Subway, in a deal that people familiar with the matter told Reuters said valued the U.S. sandwich chain at up to $9.55 billion, including debt.

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