A new bit of Papa John’s news sent PZZA stock higher on Monday.
Papa John’s (NASDAQ:PZZA) announced via a press release on Monday that Starboard Value LP and its affiliates have made an investment in the company. This investment is for $200 million and includes an option for an additional $50-million investment through March 29, 2019.
According to Papa John’s, it already has plans for the funds from the Starboard investment. This includes using roughly half of the $200 million to pay down its debts. The remaining money will go toward investing capital in its five strategic priorities: People, Brand, Value/Product, Technology and Unit Economics.
To go along with the Papa John’s news about the investment comes three new additions to its Board of Directors. This includes Jeffrey Smith, the CEO of Starboard, as an independent director. Smith is also the new Chairman of the Board for PZZA.
Another independent director that the Papa John’s news highlights is Anthony Sanfilippo. He is the former Chairman and CEO of Pinnacle Entertainment. The final addition to the PZZA Board of Directors is Steve Ritchie, the current President and CEO of the company.
“This transaction provides the Company with financial resources and strong and experienced directors on the Board in order to position the Company for success over the long term,” Olivia Kirtley, former Chairman of Papa John’s Board of Directors, said in a statement.
PZZA stock was up 10% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
