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Papa John's International, Inc. today announced an agreement to sell 84 company-owned restaurants in Colorado and Minnesota to a new franchise group, PJCOMN Acquisition Corporation, an affiliate of Washington DC-based private equity firm Milestone Capital Management, LLC.
The transaction, expected to close at the end of the third quarter or beginning of the fourth quarter, covers 49 restaurants in the Denver/Colorado Springs market, and 35 restaurants in the Minneapolis/St. Paul market. It is not expected to have a significant impact on 2005 operating results; the terms were not disclosed.
"While we are committed to growing our base of company-owned restaurants where it makes strategic sense, this sale allows us to tighten our geographic focus of corporate operations while adding an excellent new franchisee to our system," says Papa John's Chief Operations Officer, Bill Van Epps. "We believe this franchise group has the resources, experience and capabilities to be successful in these markets and in the Papa John's system."
Murry Gunty, managing partner of Milestone Capital, says, "We believe we will be able to profitably grow these markets by continuing to focus on restaurant level operational execution, while also working to increase customer awareness and overall market penetration."