Blackstone-backed Jersey Mike’s targets $7.9bn valuation in US IPO

Blackstone-owned sandwich chain Jersey Mike’s Subs is targeting a valuation of up to $7.94bn in a US initial public offering, giving the private equity firm a potential public-market monetisation opportunity less than two years after acquiring the fast-growing restaurant business, according to a report by Reuters.

The report cites a regulatory filing as showing that Jersey Mike’s and selling shareholders are seeking to raise as much as $1.09bn by offering 43.5 million shares at between $21 and $25 each, according to a regulatory filing.

The offering would provide an early test of Blackstone’s investment in the company as the private equity firm seeks to expand the brand both across the US and internationally.

Blackstone acquired Jersey Mike’s last year in a deal valued at approximately $8bn. The buyout firm is expected to remain a significant shareholder following the IPO, although the offering could provide an opportunity to realise part of its investment and establish a public-market valuation for the business.

The company plans to list on the New York Stock Exchange under the ticker JMKE, with Morgan Stanley, Jefferies and JP Morgan acting as joint book-running managers.

The IPO comes as the US market for new listings has regained momentum and investors have shown renewed appetite for companies across a broader range of sectors.

Restaurant IPOs remain relatively uncommon, however. Jersey Mike’s would follow Mediterranean restaurant chain Cava, which went public in 2023, and Black Rock Coffee Bar, which listed on Nasdaq last year.

Jersey Mike’s has grown into one of the largest fast-casual sandwich chains in North America, with more than 3,300 locations across the US and Canada.

The business traces its origins to a sandwich shop in Point Pleasant, New Jersey, where founder Peter Cancro began working as a teenager. Cancro acquired the original store in 1975 and began franchising the business in 1987, helping transform it into a nationwide chain.

Under Blackstone’s ownership, the company has been pursuing further expansion. Jersey Mike’s has outlined plans to open 300 restaurants in the UK and Ireland in partnership with Cancro, according to its filing.

The international expansion forms part of Blackstone’s broader strategy for the company, which includes increasing its domestic footprint and developing the brand in new markets.