Papa John's Largest Franchisee Sold

The Halifax Group Buys Out Papa John's PJ United, Inc.

WASHINGTON, DC (Blue MauMau) - Papa John’s largest franchisee has been sold to a private equity firm for an undisclosed amount. The Halifax Group, a private equity firm announced today its acquisition of PJ United, Inc., owner of some 116 Papa John’s stores in six states. Halifax manages a portfolio of healthcare, wellness and infrastructure service firms.

Ken Doyle, managing director of Halifax said of the acquisition, “Halifax is enthusiastic about our new partnership with the management of PJ United, particularly given our favorable experience with franchise concepts.” Doyle was referring to Halifax and Carousel Capital's buy out of franchisor Meineke Car Care Centers. It sold the chain in 2005.

Owning a car care franchise network might seem quite removed from owning a pizza franchise, but Halifax thinks it isn't such a stretch, particularly since there is a strong management team that understands the pizza business.

The Halifax Group was looking for an investment opportunity. Says Halifax's Mr. Doyle, "We are always looking at other opportunities in the lower to middle management with good management teams. What we found in PJ United is the largest franchisee in what we consider the best brand in the pizza sector. It has a full management team already in place. We think we can significantly leverage both organically and through acquisitions."

Douglas S. Stephens, founder and chief executive officer of PJ United, will retain an equity stake in the company and will continue to lead the franchise.

PJ United plans to use the additional capital to buy locations and to grow through acquisitions. Halifax's Mr. Doyle elaborates, "The benefit is to bring a new set of owners who are committed to taking this to the next level by using the knowledge base, equity capital and bank loans that we have brought in for a very significant growth strategy."

States Mr. Stephens on the benefits of Halifax leadership and capital, "Working with Halifax, we will pursue a strategy not only to expand in existing markets but also, to acquire and expand in contiguous markets as well.”