The Flynn Group, acknowledged as the largest operator of restaurant and fitness club franchises globally, is reportedly considering selling a majority stake, a move that could potentially value the company at more than $5 billion, encompassing its debt.
The Flynn Group, headquartered in San Francisco, oversees prominent franchises such as Applebee’s, Taco Bell, Panera Bread, Arby’s, Pizza Hut, Wendy’s, and Planet Fitness. Sources familiar with the matter have revealed that the company has engaged Bank of America to facilitate the sale process.
It is reported that the Flynn Group generates an impressive annual earnings figure surpassing $450 million before accounting for interest, taxes, depreciation, and amortization. The potential sale has attracted significant interest from private equity firms and sovereign wealth funds, with the involvement of Bank of America adding weight to the process.
Among the potential suitors for the majority stake, private equity firm Main Post Partners and the Ontario Teachers’ Pension Plan (OTPP), both existing investors in Flynn Group, may explore selling a portion of their stakes while retaining some investment post-transaction. Similarly, Flynn Group’s management and other significant shareholders might consider adopting a similar approach.
Currently, OTPP holds approximately one-third of Flynn Group, with Main Post holding slightly over one-third, while the remainder is owned by the company’s management. The potential sale presents an opportunity for stakeholders to reassess their positions and explore ongoing involvement options.
As the sale process progresses, representatives for Flynn Group, OTPP, Main Post, and Bank of America have declined to comment, maintaining confidentiality. Founded in 1999 by commercial real estate investor Greg Flynn, Flynn Group has evolved into a dominant force in the franchise industry.
With a vast network spanning over 2,600 establishments across the United States and Australia, Flynn Group achieves annual sales surpassing $4.5 billion, as outlined on its official website. In 2014, the Ontario Teachers’ Pension Plan made a significant investment of approximately $300 million in Flynn Group, valuing the company at over $1 billion at that time.
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