Qatari-backed fund offers US$1.5B to take Papa Johns’ private at 44% premium

GLOBAL – Papa Johns International has received a renewed US$1.5 billion takeover proposal from Irth Capital Management, offering US$47 per share in a bid to take the struggling pizza chain private.

The offer, backed by Brookfield Asset Management, represents a 44% premium over the company’s recent closing price and follows a failed joint attempt with Apollo Global Management last year.

The news sent shares soaring nearly 20% to US$38.86 as investors reacted to the potential deal.

Who Is Irth Capital?

Founded in 2024, Irth Capital is a global asset manager supported by a member of the Qatari royal family.

The firm is led by co-founders Sheikh Mohamed bin Abdulla Al-Thani and Matthew Bradshaw, a former partner at Durational Capital Management.

Irth already owns approximately 10% of Papa John’s, with half of that stake held in derivatives, giving it significant influence as the company weighs its options.

A successful acquisition would rank among Irth’s first major transactions since its launch.

Activist Pressure Mounts

The renewed bid follows recent moves by activist investor Irenic Capital Management, which built a 10% stake in Papa John’s, adding to speculation about the chain’s future. Irenic has reportedly engaged with the company regarding board representation and strategic alternatives.

Sources caution that there is no certainty Papa John’s will accept Irth’s latest offer, and additional interested parties could still emerge.

Financial Struggles Prompt Takeover Interest

Papa John’s has been working through a multi-year turnaround effort following prolonged weak demand and leadership changes.

Last month, the company reported disappointing quarterly results, with Q4 net income plunging to US$8.6 million from US$14.96 million a year earlier amid higher depreciation and administrative costs.

For full-year 2025, net income fell to US$32 million from US$84 million in 2024, with adjusted EBITDA declining to US$201 million.

The company has announced plans to close approximately 300 underperforming North American locations by 2027 as part of its restructuring efforts.

Industry Competition Intensifies

The pizza sector faces growing competition from Mexican cuisine, coffee shops, and other dining categories, with Domino’s increasingly dominating the market and capturing share from rivals including Papa John’s and Pizza Hut.

Yum Brands, parent company of Pizza Hut, has reportedly been considering a sale of that brand amid multiple quarters of declining same-store sales.

What Happens Next

Papa John’s is currently reviewing Irth’s proposal, with no guarantee of acceptance.

The company’s market value stood at approximately US$1 billion before the bid, which would represent a significant premium for shareholders.

With activist pressure building and multiple suitors potentially circling, the pizza chain’s future hangs in the balance as management navigates its next move.

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