Papa John's restaurant chain attracts new investors
PJ Western, master-franchisee of Papa John's international in Russia, the CIS and Central Europe, announces a deal with the Baring Vostok investment fund to increase its total number of restaurants to 450 by December 2020.
PJ Western and the Baring Vostok Investment Fund have signed an investment agreement for the chain's development in Russia, the CIS and Central Europe. The new investor's stock share will total 37%. Additional funding will come from Global Restaurant Management (GRM), which holds 50.1%. The investment from Baring Vostok follows an investment by GRM which included an investment from the hockey superstar, Alexander Ovechkin.
PJ Western's board of shareholders has undergone other structural changes. CapMan Russia Fund sold a portion of its share but will remain as a minority shareholder. CapMan became an investor in Papa John's in 2009.
“We are extremely happy to have Baring Vostok as one of the primary shareholder in Papa Johns. Baring has an outstanding track record in supporting talented entrepreneurs and creating world class companies in Russia”, says Petri Saavalainen, Partner of CapMan Russia.
“We continue to see tremendous growth opportunity in Russia. Over the next 3 years PJ Western will invest $50 million in the development of the Papa John’s brand. We are expanding our presence across Russia and the CIS, as well as evaluating other opportunities in Central Europe. We intend to open 450 restaurants by the end of 2020,” says Christopher Wynne, President of PJ Western.
“Papa John’s is a leading consumer brand, which has consistently outperformed in a competitive market. We share the vision to methodically expand operations in Moscow and beyond, leveraging Papa John’s international brand awareness and Mr. Wynne’s operational expertise. We look forward to working with Christopher and his management team to uphold their culture of excellence,” says Ekaterina Lukyanova, Partner of Baring Vostok.
In 2017 the number of restaurants operating under the Papa John's brand increased by 45 with 144 in operation at the end of 2017, with the chain's revenues reaching 4.5 billion rubles (approximately $80 million).