- Irth Capital offered USD 47 per share to acquire Papa John’s, valuing the chain at roughly USD 1.5B.
- The bid represents around a 50% premium over Papa John’s recent share price, reflecting confidence in the turnaround plan.
- Irth, backed by Brookfield Asset Management, aims for one of its first major global acquisitions since launching in 2024.
Papa John’s
A Qatari-backed investment firm has submitted a bid to take pizza chain Papa John’s International private. The offer comes from Irth Capital Management, a global asset manager founded in 2024 and backed by a member of Qatar’s royal family.
Irth has proposed paying USD 47 per share, valuing the company at approximately USD 1.5 billion. This represents a 50% premium over Papa John’s share price before the bid was announced.
The pizza chain’s market value stood near USD 1 billion as of Tuesday’s close. The company is currently reviewing the proposal, and there is no guarantee it will accept the offer. Moreover, other potential buyers could also emerge. However, Irth is already a shareholder, with a stake of around 10%, strengthening its position ahead of the proposed acquisition.
The firm was founded by Sheikh Mohamed bin Abdulla Al-Thani, formerly of the Qatar Investment Authority, and investor Matthew Bradshaw, who previously led Durational Capital Management.
Pizza Sector
The bid comes as the pizza sector faces growing challenges. Competition is rising from other cuisines, including Mexican food chains and specialty coffee shops. Within the pizza segment, Domino’s Pizza has steadily gained market share, surpassing competitors like Papa John’s and Pizza Hut.
Papa John’s recently announced plans to close hundreds of locations in North America, streamline its menu, and cut corporate jobs to support its turnaround strategy. Same-store sales in the region are expected to fall this year.
The company has faced internal challenges since 2017, when founder John Schnatter stepped down as CEO after controversial remarks damaged the brand. He later resigned as chairman, and sales declined sharply.
For Irth, a successful acquisition could represent an opportunity to revive a global brand at a discounted valuation.
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