Manasquan, N.J. and New York, – November 19, 2024 – Jersey Mike’s Subs, a leading franchisor of fast-casual submarine sandwich stores known for its fresh sliced and fresh grilled subs, announced today it has reached an agreement whereby private equity funds managed by Blackstone (“Blackstone”) – led by Blackstone’s most recent flagship private equity vehicle – will acquire a majority ownership position in Jersey Mike’s.

Jersey Mike’s Founder and CEO Peter Cancro will maintain a significant equity stake and continue to lead the business. The partnership with Blackstone is intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market, as well as its continued investment in technology and digital transformation. Blackstone has a long history of successfully propelling the growth of leading franchisors, including in its previous acquisitions of Hilton Hotels and SERVPRO – and has also recently invested in Tropical Smoothie Cafe and 7Brew.

Cancro began working at the company’s original Point Pleasant, New Jersey location at the age of 14, which was founded in 1956 as Mike’s Subs. He acquired the location in 1975 at age 17 and began franchising units in 1987. Today, Jersey Mike’s is a premier national franchisor with more than 3,000 locations nationwide open and in development, and continues to be recognized for its high-quality and freshly prepared submarine sandwiches, and passion for its authentic products and customers. The company has been recognized as one of the fastest-growing fast-casual restaurant chains in America and ranked #2 on Entrepreneur’s 2024 Franchise 500.

Peter Cancro, Jersey Mike’s Founder and CEO, said: “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. Blackstone has helped drive the success of some of the most iconic franchise businesses globally and we look forward to working with them to help make significant new investments going forward.”

Peter Wallace, a Senior Managing Director at Blackstone, said: “Jersey Mike’s has grown for more than half a century by maintaining an unrelenting focus on quality (and delicious sandwiches) – consistently building on its loyal customer base as it has scaled nationwide. Blackstone has deep experience helping accelerate the expansion of high-growth franchise businesses and this area is one of our highest-conviction investment themes. We are excited to partner with an entrepreneur of Peter’s caliber and the talented Jersey Mike’s team. Our capital and resources will help support key investments in growth and technology for the benefit of Jersey Mike’s customers and exceptional franchisees. I highly recommend the #13 Original Italian, Mike’s Way.”

Giving back is also core to Jersey Mike’s mission. The company recently completed its 14^th Annual Month of Giving, surpassing over $113 million raised for local charities since 2011. It has also launched the Coach Rod Smith Ownership program, which helps provide store-level managers greater opportunities to become Jersey Mike’s franchise owners.

The transaction is expected to be completed in early 2025 subject to the satisfaction of certain closing conditions, including applicable regulatory approvals. Blackstone’s private equity strategy for individual investors is also expected to invest as part of the transaction.

Guggenheim Securities and Morgan Stanley & Co. LLC are acting as financial advisors and White & Case LLP served as legal counsel to Jersey Mike’s. Barclays and Bank of America are acting as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone.

About Jersey Mike’s
Jersey Mike’s Subs, with more than 3,000 locations open and in development, serves authentic fresh sliced/fresh grilled subs on in-store freshly baked bread — the same recipe it started with in 1956. Passion for giving in Jersey Mike’s local communities is reflected in its mission statement “Giving…making a difference in someone’s life.” For more information, please visit jerseymikes.com.

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1.1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

Contacts

For Blackstone:
Matt Anderson
matthew.anderson@blackstone.com
(518) 248-7310

For Jersey Mike’s
Kyle Potvin
kpotvin@splashllc.com
(917) 838-4500

EQT and Keywords Studios are pleased to announce that the investor group led by EQT, together with Canada Pension Plan Investment Board (CPP Investments) and Temasek, has completed its previously announced acquisition of Keywords Studios, the leading international video games service provider. Keywords Studios’ ordinary shares have now ceased trading on the AIM market and the company has been delisted from the London Stock Exchange.

Since its admission to AIM in July 2013, Keywords Studios has become the trusted global solutions provider to the world’s leading video games and entertainment companies, working with them across the full content development cycle, from concept through to launch and beyond. Keywords Studios has an excellent track-record of evolving the business to meet its clients’ needs and has a diversified portfolio with services across the video-games life cycle.

As a global investor with decades of experience investing in services and technology, EQT’s support for Keywords’ management team and strategy will enable it to accelerate its growth, including through additional capital for its value accretive acquisition strategy. It will also enable the business to expand into new and adjacent markets and invest in innovative technologies and services that will help it continue to meet changing customers’ needs and maintain its status as the global gaming services market leader.

On behalf of the consortium, Janice Leow, Partner in the EQT Private Equity Advisory Team and Head of Private Capital Southeast Asia, commented: “We look forward to a strong partnership with the Keywords Studios management team to support and build on their strategy as a global leader in end-to-end video gaming technology services. Operating in a rapidly expanding market with strong tailwinds underpinned by a continued shift towards lean-forward entertainment, Keywords Studios is well-positioned to unlock substantial long-term value through its strong talent base and deep industry relationships. As the sector continues to evolve, the company’s focus on technology innovation, higher value-added services, and international expansion will be critical in driving future growth.”

Keywords Studios CEO Bertrand Bodson said: “This is a significant milestone for Keywords Studios as we start the next phase of our growth journey alongside our new partners. The hard work and dedication of everyone at Keywords Studios, as well as the long-standing support of our clients and shareholders, has enabled our growth over the last decade and I would like to thank them all for their support. We are confident that our expertise, combined with EQT’s resources, will only strengthen our ability to serve our customers and realise our growth potential and mission to be the world’s leading content creation platform for the video gaming industry. I look forward to what the next chapter will bring for our company, customers and employees.”

EQT has a long and successful track record investing in the services and technology industries, working alongside entrepreneurial management teams to accelerate growth in global businesses and transform them into industry leaders. EQT is investing from its BPEA Private Equity Fund VIII.

With this transaction, BPEA Private Equity Fund VIII is expected to be 80-90 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on target fund size and subject to customary regulatory approvals.

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of BPEA Private Equity Fund VIII will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.

About EQT
EQT is a purpose-driven global investment organization with EUR 246 billion in total assets under management (EUR 134 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com

Follow EQT on LinkedIn, X, YouTube and Instagram

About Keywords Studios

Keywords Studios partners to deliver creative and technology-enabled solutions to the global video games and entertainment industries. Established in 1998, and now with over 70 facilities in 26 countries strategically located in Asia, Australia, the Americas, and Europe, it provides services across the entire content development life cycle through its Create, Globalize and Engage service lines to a large blue-chip client base across the globe.

Keywords Studios has a strong market position, providing services to 24 of the top 25 most prominent games companies and contributing to over 70% of the 2023 Game Awards winners.

Across the games and entertainment industry, clients include Bandai Namco, Bethesda, Electronic Arts, Epic Games, Konami, Microsoft, Netflix, Riot Games, Square Enix, Supercell, TakeTwo, Tencent and Ubisoft. Recent titles worked on include Starfield, Baldur’s Gate 3, Hogwarts Legacy, Elden Ring, Fortnite, Valorant, League of Legends and Clash Royale. Keywords Studios’ wide range of services also supports media and entertainment companies such as top tier streaming platforms, broadcasters, content producers and distributors.