Qatari-Backed Irth Capital Submits $1.5B Bid to Take Papa John’s Private

Irth Capital Management, a Qatari-backed investment fund, has submitted a bid to acquire Papa John's International and take it private, according to The Wall Street Journal. 

The deal also includes backing from Brookfield Asset Management. 

What They're Willing to Pay

According to the Journal, Irth has offered $47 per share, which values Papa John's at about $1.5 billion. The price would be close to a to 50% premium to where shares for the pizza chain traded before the bid. 

As of close on Tuesday, Papa John's had a rough valuation of about $1 billion. Their shares have fallen recently, though, but reached as high as $140 in 2021. 

Right now, it's unclear if Papa John's is interested or if anyone else will submit a bid. 

Last year, Irth, alongside Apollo Global Management, the same company that bought Caesars back in 2008, tried to buy Papa John's, but the talks didn't result in an agreement. 

That said, Irth is an existing shareholder and has about 10% stake, per the Journal. 

The Pizza Industry

Papa John's is one of the few popular pizza chains, along with Pizza Hut and Domino's. While Domino's is the biggest of the bunch, Papa John's is still a competitor, though the industry is struggling. 

Last month, Papa John's announced it was closing hundreds of stores in the USA, removing some menu items, and eliminating some corporate jobs. The company also expects same-store sales to be down. 

Meanwhile, Pizza Hut, owned by Yum Brands, is exploring a sale of the company. 

In 2017, CEO John Schnatter made some controversial statements that reflected poorly on the brand, and he eventually stepped down as CEO. However, in the aftermath, sales fell. 

More on Irth

Irth was established in 2024. It's a global asset manager backed by a member of the Qatari royal family. The co-founders include Sheikh Mohamed bin Abdulla Al-Thani, formerly of Qatar Investment Authority, and Matthew Bradshaw, who started Durational Capital Management, per the Journal. 

A deal for Papa John's would be one of Irth's first big transactions.