A delivery person holds a box of Papa John's pizza. As of Tuesday's market close, Papa John's market capitalization was approximately $1 billion.
Irth Capital has made an offer to take the pizza chain private.
According to informed sources, an investment fund supported by Qatar has submitted a proposal to privatize the pizza chain Papa John's International.
Sources indicate that Papa John's is reviewing the acquisition proposal from Irth Capital Management, which also has the support of Brookfield Asset Management.
Deal Details Sources stated that Irth's offer is $47 per share, valuing Papa John's at approximately $1.5 billion. This offer represents a premium of about 50% over Papa John's share price prior to the submission of the offer.
As of Tuesday's close, Papa John's market capitalization was around $1 billion. Its stock price has been under sustained pressure in recent years, having peaked at over $140 per share in 2021.
Following reports of the acquisition news, Papa John's stock surged approximately 19% on Wednesday, closing at $38.86 per share.
There is no guarantee that Papa John's will accept Irth's offer, and the possibility of other bidders emerging cannot be ruled out.
Sources revealed that last year, Irth partnered with private equity firm Apollo Global Management in an attempt to acquire Papa John's, but those negotiations ultimately broke down without an agreement being reached.
Sources added that, as an existing shareholder of Papa John's, Irth has recently increased its effective stake in the company to approximately 10%.
Industry Background The pizza industry is facing increasingly intense competition from other foodservice categories such as Mexican cuisine and coffee shops. Domino's Pizza is consolidating a more dominant position in the chain market and steadily eroding the market share of competitors, including Papa John's and Pizza Hut.
Last month, Papa John's announced plans to close hundreds of U.S. locations, streamline its menu offerings, and cut corporate jobs in an attempt to improve its operational performance. The company anticipates that its North American same-store sales will continue to decline this year.
Pizza Hut has experienced multiple consecutive quarters of declining same-store sales in the U.S., prompting its parent company, Yum Brands, to consider a potential sale of the brand.
Papa John's has faced significant challenges for years. In 2017, a series of controversial remarks made by the company's founder and former CEO, John Schnatter, led to a substantial loss of customers. In December of that year, he agreed to step down as CEO; he resigned from his role as Chairman of the board several months later, after which Papa John's sales plummeted.
Irth is a global asset management firm supported by members of the Qatari royal family, established in 2024. Its co-founders are former Qatar Investment Authority official Sheikh Mohammed bin Abdullah Al Thani and Matthew Bradshaw, previously the founder of Durational Capital Management. The team also includes former Starboard Value employee Mike Albert. That activist hedge fund invested in Papa John's several years ago, and its founder previously served as Chairman of Papa John's board.
A successful acquisition of Papa John's would mark one of Irth's first major transactions since its inception.
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