Lee Equity Partners has completed its acquisition of pizza chain Papa Murphy’s International from Charlesbank Capital Partners. The deal reportedly is worth around $180 million, which represents a 10x EBITDA multiple.
Papa Murphy’s International announced the completion of its sale to New York-based Lee Equity Partners. Its previous owner was Charlesbank Capital Partners of Boston. Terms and details of the deal are not being disclosed.
“We have worked very hard to complete this transaction, and we are all eager to get on with the next chapter in the life of the Papa Murphy’s brand,” said John Barr, Chairman and CEO of Papa Murphy’s. “The management team here and our partners at Lee Equity are optimistic and excited about the future.”
The strength of the management team and the potential for growth were two key factors that attracted Lee Equity Partners to the take ‘n’ bake pizza pioneer. “We’re in active dialogue with John and his team about avenues for growth and expansion of the brand’s presence,” said Thomas H. Lee, President of Lee Equity Partners. “Their track record indicates they know how to manage growth strategically, so we want to do what we can to support and enhance those efforts.”
The company plans to introduce key members of the Lee Equity team to its franchisee community at its national convention this summer in San Diego.
About Papa Murphy’s
Papa Murphy’s is the fifth-largest pizza chain in the country and the pioneer and leader of the Take ‘N’ Bake pizza segment. Papa Murphy’s operates nearly 1,200 franchised and corporate-owned locations in 35 states and Canada. The Vancouver, Washington-based company offers custom-made pizzas featuring high-quality fresh toppings generously layered on pizza dough that is made fresh each morning in each store. By baking Papa Murphy’s pizzas at home, customers get to experience the home-baked aroma of a convenient, delicious meal that the brand is known for. In addition to handmade pizzas, the company offers a growing menu of Take ‘N’ Bake items, including Cheesy Bread, Cinnamon Wheels, and chocolate chip cookie dough. Papa Murphy’s has been voted “Best Pizza Chain in America” for seven consecutive years by consumers nationwide in the Restaurants and Institutions “Consumers’ Choice in Chains” survey and is a four-time recipient of Pizza Today’s Chain of the Year award, most recently in 2009. For more information, visit www.papamurphys.com.