Shares in Papa John’s International surged on Wednesday following reports that private equity giant Apollo Global Management and Qatari investment firm Irth Capital have submitted a proposal to acquire the company and take it private, according to a report by Bloomberg.
The stock advanced 7.4% in New York trading – its sharpest single-day gain since 8 May – bringing its year-to-date performance to +17%, significantly outperforming the S&P Small Cap 600 Index, which has declined over the same period.
According to a report by Semafor, the offer from Apollo and Irth is understood to value Papa John’s close to its current market capitalisation, citing unnamed sources familiar with the discussions.
The news comes after earlier reports this year that Irth had previously expressed interest in a potential buyout, which also sent shares higher at the time. Papa John’s shares closed Tuesday at $48.20.
Neither Apollo nor Papa John’s offered comment when contacted by Bloomberg. Irth Capital did not immediately respond to a request for comment.
The Louisville-based pizza chain is currently undergoing a strategic overhaul under CEO Todd Penegor, who assumed the role less than a year ago. Speaking at a recent industry conference, Penegor highlighted operational improvements: “We’ve been really focused on the core, but it has been paying off, as we’re selling a lot more pies.”
