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Log In / Register | Apr 25, 2014

Private Equity Firm Pays Top Price for Papa Murphy’s

What’s so interesting about private equity firm Lee Equity Partners buying take ‘n’ bake Papa Murphy’s? The price.

. . . talk to the private-equity cognoscenti and they’ll tell you that this deal is worth paying attention to because it’s among the strongest signs yet that frothiness has returned to the private-equity business. And we’re talking boom-era frothiness.

Lee Equity acquired Papa Murphy’s for about $180 million, or roughly nine times to 10 times the company’s earnings before interest taxes depreciation and amortization, according to people familiar with the deal. That’s a sky-high multiple for a restaurant chain, one reminiscent of pricey acquisitions struck at the market peak, say industry insiders. — The Wall Street Journal

Tom Lee, managing partner of Lee Equity Partners, who launched his original firm in 1974, is one of the pioneers of the private equity business.
 

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