EQT Weighs Sale of Papa John’s Pizza China Franchisee

(Bloomberg) -- Swedish buyout firm EQT AB is considering a sale of China F&B Group, which runs Papa John’s Pizza and Dairy Queen outlets in the world’s most populous country, people with knowledge of the matter said.

The private equity firm has held preliminary discussions with investment banks about a potential sale of its majority stake in China F&B, said the people, who asked not to be identified as the information is private. A deal could value the franchise operator at about $100 million to $200 million, the people said.

EQT bought 57% of China F&B with other investors including SEB Private Equity and General Oriental Investments for an undisclosed amount in 2013. The company, which was founded in 2003, ran about 500 Dairy Queen and nearly 170 Papa John’s Pizza outlets in China at the end of 2014, according to EQT’s website. Dairy Queen opened its first store the country in 1992, according to its China website.

Deliberations are at an early stage, and EQT hasn’t started a formal sale process, according to the people. A representative for EQT declined to comment.

--With assistance from Sarah Syed.

To contact the reporters on this story: Vinicy Chan in New York at vchan91@bloomberg.net;Cathy Chan in Hong Kong at kchan14@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Ben Scent

©2019 Bloomberg L.P.