By Svea Herbst-Bayliss
NEW YORK, May 14 (Reuters) - Investment firm Irth Capital is working with Papa John's International's largest U.S. franchisee, who controls around 10% of the pizza chain's domestic restaurants, to take the company private, three sources told Reuters.
Nadeem Bajwa, who delivered pizzas for the chain as a college student and now operates nearly 300 Papa John's locations, will make a "significant investment" in the buyout process, said two of the sources, who are not permitted to
publicly discuss the private talks. The board and management were recently informed of his intentions, the people added.
Bajwa's involvement unites Papa John's biggest U.S. operator with Irth, which is one of the company's top five investors. As a franchisee, Bajwa's interest adds an unusual twist to the company's long-running sales process, one that industry analysts say may accelerate the take-private process.
Numerous smaller restaurant companies struggling with rising costs and changing consumer tastes have gone private in the last year, eyeing the chance to avoid the scrutiny of public markets as they reset their strategies during a period of soft demand.
Papa John's has been in active discussions about a potential sale for the past year, the sources said. The company has been reviewing Irth's offer, according to one of the sources. All sources cautioned that there is no guarantee of a deal.
A representative for Bajwa could not be reached for comment. Representatives for Irth and the company declined to comment.
Bajwa's interest adds firepower to Irth's $47-per-share offer made earlier this year with backing from Brookfield Asset Management, after a joint effort with Apollo Global Management failed in 2025.
That offer represents a 44% premium to Thursday's closing price of $32.72 a share.
"It is highly unusual to see this kind of cooperation between a franchisee and a bidder and this should give comfort to management and investors that Irth's bid, backed by Brookfield, is real and that there is a way forward for this company," said Peter da Silva Vint, managing partner at consulting firm Jasper Street, which works with companies facing pressure from activist investors.
BAJWA'S EXPANSION EFFORTS
Since emigrating to the United States from Pakistan nearly four decades ago, Bajwa has built his Bajco Group into a flourishing company alongside two brothers and other family members, with interests in construction and accounting along with its 300 Papa John's locations.
The Boardman, Ohio-based company first opened two such restaurants in 2002 and developed 10 in the Pittsburgh area the following year.
Bajwa serves on the executive committee of the company's franchise advisory council, which works with management, and is vice chair of the Papa John's Franchise Association, a group of franchisees independent of the company, making him a critical player in discussions between the company and its franchisees.
The company's first-quarter earnings fell short of expectations due to a drop in North American sales. Shares are down nearly 15% this year, part of a broader underperformance by quick-service restaurant stocks as those companies grapple with ingredient inflation and increasingly cost- and calorie-conscious consumers.
Pizza Hut, owned by Yum Brands, is also in a process to sell itself to a private owner, following a spate of take-private deals in 2025 by smaller chains like Potbelly and Denny's.
Irth, backed by a member of the Qatari royal family, owns roughly 10% of Papa John's, about half of which is in derivatives, one of the sources said.
Papa John's has 6,000 locations around the world.
(Reporting by Svea Herbst-Bayliss; additional reporting by Abigail Summerville; editing by David Gaffen)
