Abigail Summerville
(Reuters) – Flynn Group, the world’s largest restaurant and fitness franchisee, is considering a sale of a majority stake that could be valued at more than $5 billion, including debt, according to people familiar with the matter.
Flynn Group, which operates franchises for Applebees, Taco Bell, Panera Bread (NASDAQ:), Arby’s, Pizza Hut, Wendy’s (NASDAQ:) and Planet Fitness (NYSE:), is working with Bank of America on the sale process, sources said. .
San Francisco-based Flynn Group generates more than $450 million in annual earnings before interest, taxes, depreciation and amortization, according to sources.
Private equity firms and sovereign wealth funds are among the bidders for a majority stake in the sale, added the people, who asked to remain anonymous because the matter is private.
The Ontario Teachers’ Pension Plan (OTPP) and private equity firm Main Post Partners, which are investors in Flynn Group, may sell some of their stakes and continue investing after the deal, the people said.
Flynn Group management, which is also a major shareholder, could do the same, the sources added.
OTPP owns about a third of Flynn Group, Main Post owns just over a third and Flynn management owns the rest, sources said.
Representatives for Flynn Group, OTPP, Main Post and Bank of America declined to comment.
The eponymous company, founded in 1999 by commercial real estate investor Greg Flynn, operates more than 2,600 restaurants and fitness clubs in the United States and Australia, generating annual sales of more than $4.5 billion, according to its website.
In 2014, Ontario Teachers invested approximately $300 million in the company, valuing it at more than $1 billion.