Papa John’s Obtains $200M Strategic Investment from Starboard
Papa John’s International Inc. has entered into a securities purchase agreement with Starboard Value LP pursuant to which Starboard is making a $200 million strategic investment in the company with the option to make an additional $50 million investment through March 29.
In related news, the Papa John’s Board of Directors is expanding to include two new independent directors, including Jeffrey C. Smith, Chief Executive Officer of Starboard, who has been appointed Chairman of the Papa John’s Board, and Anthony Sanfilippo, former Chairman and Chief Executive Officer of Pinnacle Entertainment Inc. Both bring substantial experience in the restaurant and hospitality industries, with skill sets spanning operational turnarounds, corporate finance and corporate governance.
In addition, Papa John’s President and CEO Steve Ritchie has been appointed to the board.
Last September, the company began a process to evaluate a wide range of strategic options with the goal of maximizing value for all shareholders and serving the best interest of the Company’s stakeholders.