© Reuters. People walk past Taco Bell's first digital-only American cantina in Times Square in New York City, U.S., April 14, 2021. REUTERS/Shannon Stapleton/File Photo
By Abigail Summerville
(Reuters) – Flynn Group, the world's largest franchised restaurant and gym operator, 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 the Applebees, Taco Bell, Panera Bread (NASDAQ , Arby's, Pizza Hut, Wendy's (NASDAQ ) and Planet Fitness (NYSE ) franchises, is working with Bank of America on a sale process, the 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 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 continue investing after a deal, according to sources.
Flynn Group management, who are also major shareholders, 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, 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 more than 2,600 restaurants and gyms in the U.S. and Australia, generating more than $4.5 billion in annual sales, according to its website.
In 2014, Ontario Teachers invested approximately $300 million in the company, valuing it at more than $1 billion.
