Blackstone Stock In Focus After PE Firm Set To Acquire Majority Stake In Sandwich Chain Jersey Mike’s
By Stocktwits Inc | First Published Nov 19, 2024, 7:49 PM ISTBlackstone said the deal is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market and its continued investment in technology and digital transformation.
The world’s largest alternative asset manager Blackstone Inc ($BX) on Tuesday announced that private equity funds managed by the firm will acquire a majority ownership position in Jersey Mike’s, a franchisor of fast-casual submarine sandwich stores.
Blackstone said the deal is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market and its continued investment in technology and digital transformation.
Latest Videos
The private equity giant said following the transaction, Jersey Mike’s Founder and CEO Peter Cancro will maintain a significant equity stake and continue to lead the business.
“We believe we are still in the early innings of Jersey Mike’s growth story and that Blackstone is the right partner to help us reach even greater heights,” Cancer said.
Blackstone said the transaction is expected to be completed in early 2025 subject to necessary approvals.
The stake acquisition will be led by Blackstone’s most recent flagship private equity vehicle. The firm’s private equity strategy for individual investors is also expected to invest as part of the transaction.
Peter Wallace, a Senior Managing Director at Blackstone, said the private equity firm’s capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees.
Meanwhile, Blackstone’s shares were trading lower by 0.77% in Tuesday’s pre-market session. Retail sentiment on Stocktwits was trending in the ‘neutral’ territory compared to ‘bullish’ a week ago.
During the third quarter, Blackstone reported a 44% rise in its revenues to $3.66 billion, higher than a Wall Street estimate of $2.68 billion. Earnings per share (EPS) came in at $1.01, topping an estimate of $0.98.
But most notably, the firm’s assets under management (AUM) rose 10% year-over-year (YoY) to a record of $1.11 trillion, supported by $40.5 billion of inflows in the quarter.
Shares of Blackstone have gained over 42% since the beginning of the year.
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.