Alternative investment management firm Blackstone Inc. of New York on Wednesday announced it purchased a stake in 7 Brew Coffee Co. of Fayetteville from Jimmy John Liautaud, the founder of Jimmy John’s Sandwiches.
Terms of the transaction were not disclosed.
It was not immediately clear how the deal would impact the ownership battle between Liautaud and the drive-through coffee shop chain. Liautaud’s Stillwater Brew LLC says it was supposed to have received a 22.5% stake in 7 Brew for helping develop its franchise program. Mediation efforts between the two sides failed last year, and as of Thursday morning, the case in Benton County Circuit Court was still open.
Liautaud and 7 Brew CEO John Davidson, who have exchanged accusations of deceit and mismanagement in legal filings, were both quoted in a Blackstone news release on the transaction.
Liautaud said, “I am truly honored to have had my mentor, the legendary Jamie Coulter, ask me to help launch franchising for this exceptional brand. I am confident that the Brew Crew, management and Blackstone will continue to drive exponential growth.”
Davidson said, “We are on a strong growth trajectory thanks to our outstanding team, the Brew Crew, and are so excited to have found in Blackstone a true partner who understands our culture and whose global reach and incredible resources will enable us to reach this next stage of growth. Blackstone brings everything we are looking for to help serve our customers and support our franchisees – industry and market knowledge, franchisee relationships, data science, operations and real estate expertise.”
Publicly traded Blackstone, which has more than $1 trillion in assets under management, said it plans to help 7 Brew accelerate its already-rapid growth. The company has grown to more than 190 locations since it launched in 2017.
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