Exclusive: Buyout firms Bain, CVC compete for Papa John's -sources

Bain Capital and CVC Capital Partners are among the private equity firms competing to acquire Papa John`s International Inc
, the world`s third-largest pizza delivery company, people familiar with the matter said on Tuesday.

The buyout interest in Papa John`s comes amid a battle for control with its founder John Schnatter, who owns about 30 percent of the company. He resigned as chairman in July following reports that he had used a racial slur on a media training conference call.

Since then, Schnatter has been seeking ways to regain influence, and asked Papa John`s in a letter earlier this month to amend a poison pill provision it has adopted so that he can engage with bidders that had expressed interest in speaking to him.

Private equity firms KKR & Co Inc and Roark Capital have also been vying for Papa John`s, with binding offers expected in the next few weeks, the sources said.

Hedge fund Trian Fund Management LP, an investor in fast-food chain Wendy`s Co that had expressed interest in Papa John`s, is considering a potential investment in Papa John`s should a deal for the sale of the company fail to be reached, the sources added.

A special committee formed by Papa John`s board of directors is exploring a sale as part of a wide review of strategic alternatives, and there is no certainty that the company will agree to a sale, according to the sources, who asked not to be identified because the matter is confidential.

Papa John`s, Bain, CVC, KKR and Roark declined to comment, while Trian did not immediately respond to a request for comment.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)