Flynn Group, world's largest franchisee, explores $5 bln-plus sale -sources

Planet Fitness

08/02/2024 19:17

By Abigail Summerville
       Feb 8 (Reuters) - Flynn Group, the world's largest
franchisee operator of restaurants and fitness clubs, is
exploring a majority stake sale that could value it at more than
$5 billion, including debt, according to people familiar with
the matter.
    Flynn Group, which operates Applebees, Taco Bell, Panera
Bread, Arby's, Pizza Hut, Wendy's and Planet Fitness franchises,
is working with Bank of America  BAC.N  on a sale process, the
sources said. 
    Flynn Group, which is based in San Francisco, generates over
$450 million of annual earnings before interest, taxes,
depreciation and amortization, according to the sources.
    Private equity firms and sovereign wealth funds are among
the suitors for the majority stake that is up for sale, added
the sources, who requested anonymity because the matter is
confidential. 
    Ontario Teachers' Pension Plan (OTPP) and private equity
firm Main Post Partners, which are investors in Flynn Group,
could sell part of their stakes and remain invested following a
deal, according to the sources. 
    Flynn Group's management, who are also significant
shareholders, may do the same, the sources added.
    OTPP owns around a third of Flynn Group, Main Post owns
slightly over a third, and Flynn management owns the rest, the
sources said. 
    Representatives for Flynn Group, OTPP, Main Post and Bank of
America declined to comment.
    Founded in 1999 by commercial real estate investor Greg
Flynn, the eponymous company operates over 2,600 restaurants and
fitness clubs in the U.S. and Australia, generating over $4.5
billion in annual sales, according to its website. 
    In 2014, Ontario Teachers invested approximately $300
million in the company, valuing it at over $1 billion.

 (Reporting by Abigail Summerville in New York, editing by David
Ljunggren)
 ((abigail.summerville@thomsonreuters.com;))