Jersey Mike's, the quickly expanding sandwich chain, is being acquired by asset management giant Blackstone.

In the transaction announced Tuesday, private equity funds managed by Blackstone will be used to acquire majority ownership of Jersey Mike's. The deal is "intended to help enable Jersey Mike’s to accelerate its expansion across and beyond the U.S. market," the companies said, as well as aid ongoing technological investments.

Blackstone and Jersey Mike’s did not immediately disclose financial terms in their Tuesday announcement. But a source familiar with the matter confirmed to The Associated Press that the transaction would value Jersey Mike's at around $8 billion, a figure previously reported by The Wall Street Journal.

The acquisition of the private company is expected to close in early 2025, subject to regulatory approvals and other closing conditions. Under terms of the agreement, Jersey Mike’s founder and CEO Peter Cancro will continue to lead the business and maintains a “significant equity stake" in the chain, the companies 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," Cancro said in a prepared statement — adding that Blackstone “has helped drive the success of some of the most iconic franchise businesses globally.”

Jersey Mike’s roots date back to 1956, with a Point Pleasant Beach storefront location that was originally called Mike’s Subs. In 1975, Cancro, then a 17-year-old high school senior who had worked there since he was 14, bought the operation with the help of his football coach.

The chain has expanded rapidly over the last decade, more than tripling its locations from 857 stores in 2014, to more than 2,800 this year, according to Technomic, a restaurant consulting company.

Jersey Mike's posted sales of $3.3 billion in 2023, up 25% from the prior year, according to Technomic. It's the 30th largest chain in the U.S. based on annual sales.

Its aggressive growth has helped Jersey Mike's take market share from rivals like Subway, which has been struggling with a glut of aging stores. Last year, Subway was acquired by Roark Capital, a private equity firm with expertise in restaurant management. Roark also owns Inspire Brands, which houses two other Jersey Mike’s rivals: Jimmy John’s and Arby’s.

Tuesday's agreement with Jersey Mike's follows a series of similar investments from Blackstone. Just earlier this year, the private equity firm acquired Tropical Smoothie Cafe in a deal that it said would also aid the chain's expansion.