Submarine sandwich store chain Jersey Mike’s Subs has been sold to private equity funds managed by Blackstone for $8 billion.

The funds will acquire a majority ownership position in Jersey Mike’s, while the chain’s founder and CEO Peter Cancro will maintain a significant stake and continue to lead the business. 

The deal is expected to help fuel Jersey Mike’s expansion across and beyond the US, as well as investment in technology and digital transformation.

“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,” said Cancro.

“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,” he added.

The transaction is expected to be completed early next year, subject to the satisfaction of certain closing conditions, including applicable regulatory approvals.

Jersey Mike’s Subs was founded in 1956 as Mike’s Subs with one location in Point Pleasant, New Jersey. Cancro acquired the chain in 1975 and began franchising units in 1987. The chain now has more than 3000 locations nationwide.