Papa John’s Considers $1.5 Billion Buyout Offer

Papa John’s International is exploring a move to go private with a possible $1.5 billion acquisition, as reported by Reuters.

Irus Capital Management, an investment fund connected to Qatar and supported by Brookfield Asset Management, submitted a proposal on Wednesday. The offer stands at $47 per share, which is a significant 44% increase over the stock’s recent closing price.

Following this news, shares surged 15%, closing at around $38.86. This bid comes as the company has been trying to revive its fortunes after a series of disappointing sales and changes in leadership.

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Irus Capital, a newer entity founded in 2024 with backing from Qatar’s royal family, reportedly owns about 10% of Papa John’s already.

The company, led by Sheikh Mohammed bin Abdullah Al-Thani and Matthew Bradshaw, is collaborating with Brookfield on a high-stakes acquisition proposal. If it goes through, this would mark one of Irus’ first major deals, as noted by Reuters.

This acquisition attempt would follow a challenging period for the company, which has seen financial recovery after failed acquisition attempts in the past, notably by Apollo Global last year, when they attempted a joint offer exceeding $60 per share.

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In addition, activist investor Irenic Capital Management is increasing its share in Papa John’s, fueling speculation regarding the company’s future.

Despite the significance of the offer, there’s no certainty of reaching an agreement, as the pizza giant remains open to proposals from other potential buyers.

Papa John’s has faced challenges with sluggish consumer spending and fierce competition in the North American pizza market.

Recently, the company reported a 5.4% drop in same-store sales in North America. To improve its bottom line, Papa John’s plans to close about 300 underperforming restaurants in the region by the end of 2027.