---
title: "Papa John’s May Be Seeking Buy-Out"
url: https://burnaze.com/article/e4641eac-3b31-4b92-8e37-799b8ee804af
source: "1851 Franchise"
original_url: https://1851franchise.com/papa-johns-may-be-seeking-buy-out-2708010
category: "Pizza"
industry: "Restaurants"
segment: "Pizza"
topics: ["Finance & M&A"]
published: 2018-09-28T16:11:01.000Z
modified: 2026-11-01T02:33:50.983Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/3ade39e3cb7f10adbbfca3886815e7115826.jpg
---

# Papa John’s May Be Seeking Buy-Out

**TL;DR:** Papa John's is reportedly seeking a buy-out after reaching out to private equity firms and companies to submit acquisition offers. The move is likely an attempt to prevent a hostile takeover by ousted founder John Schnatter.

*originally published in 1851 Franchise on 2018-09-28. [Read the original](https://1851franchise.com/papa-johns-may-be-seeking-buy-out-2708010).*

## Story

This week, Reuters reported that Papa John’s reached out to a number of companies and private equity firms asking them to submit offers to acquire the pizza chain.

According to anonymous sources familiar with the matter, Papa John’s sent potential buyers information about an auction to sell the company, and expects to receive initial bids by the end of October. One source added that the franchise is also seeking alternative deals, such as a new investment. Papa John’s has declined to comment.

The move is likely an extreme preventative measure to fend off a hostile takeover from ousted founder John Schnatter, who still owns about 30 percent of the company. Schnatter, who has said he regrets resigning following reports that he used a racial slur on a conference call this summer, has been publicly trying to regain control of the company he founded.

On Wednesday, CNBC reported that Schantter had reached out to private equity firms in hopes of striking a partnership to purchase Papa John’s and take the company private. Schnatter denied that report.

In July, Papa John’s board of directors approved a poison-pill provision to prevent Schnatter from purchasing a majority share in the company. The measure would dilute the franchise’s common stock significantly as soon as Schnatter’s stake reached 31 percent.

Reports of a potential buy-out sent Papa John’s shares up 8.5 percent on Wednesday, giving the franchise a closing market value of nearly $1.6 billion.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- private equity (topic)
- Papa Johns (company)
- Reuters (company)
- poison pill (topic)
- buy-out (topic)
- hostile takeover (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/papa-johns-may-be-seeking-buy-out-2708010). Summarized by Burnaze (https://burnaze.com/article/e4641eac-3b31-4b92-8e37-799b8ee804af).