Blackstone Nearing Jersey Mike's Subs Deal

(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. The announcement could come as early as this week, according to a source familiar with the matter.

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

Neither Blackstone nor Jersey Mike's have immediately responded to requests for comment from Reuters.

Jersey Mike's Subs is a fast-casual sub sandwich franchise that operates over 2,800 locations.

In April, Blackstone agreed to purchase Tropical Smoothie Cafe, marking another investment in a franchise business. Previous franchise deals by Blackstone include the 2007 acquisition of Hilton Hotels and an investment in Servpro, a franchise specializing in cleanup and emergency restoration.

Private equity firms are increasingly interested in franchise operators. Last year, Roark Capital agreed to purchase Subway, valuing the U.S. sandwich chain at up to $9.55 billion, including debt.