Papa John’s International has received a takeover proposal from Qatari-backed investment firm Irth Capital, which has offered to take the restaurant group private at a valuation of roughly $1.5bn, according to a report by the Wall Street Journal citing unnamed people familiar with the matter.
Irth has proposed acquiring the company for $47 per share, representing a significant premium of about 50% compared with the share price before the approach was made.
News of the proposal sent Papa John’s shares higher, with the stock rising about 19% to close at $38.86 following reports of the bid. Prior to that, the company had a market capitalisation of roughly $1bn, with its share price having declined sharply since peaking above $140 in 2021.
There is no certainty that Papa John’s will accept the proposal, and other bidders could potentially emerge. Irth had previously explored an acquisition of the company last year alongside Apollo Global Management, though those discussions ultimately did not result in a deal.
Irth is already a shareholder in the business and has recently increased its effective stake to around 10%, according to sources.
Papa John’s has been attempting to revive its performance amid declining sales and operational pressures. The company recently announced plans to close hundreds of North American stores, simplify its menu and reduce corporate headcount as part of a turnaround effort.
