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Business Description:
PJCOMN, LLC owned the majority of the stock in PJCOMN Acquisition Corp. (Papa John's)
 PJCOMN Acqusition Corp. (Papa John’s) is the third largest operator and franchisor of delivery and carry-out pizza restaurants in the United States, with over 3,000 units, of which 75% are franchised. Menu items include pizza along with side items such as breadsticks, cheese sticks, chicken strips, chicken wings, and soft drinks.
Transaction Background:
Blackstreet purchased 84 units in Minnesota and Colorado directly from Papa John’s, becoming the third largest franchisee in the system. The units collectively have in excess of $50 million in sales. The 84 units have been underperforming and Papa John’s determined that they would divest them as part of their overall plan to reduce company operated units to 10%.
Investment Thesis:
Blackstreet believed that after years of chronic underperformance, the territories became neglected and required new, entrepreneurial ownership. Blackstreet has organized a team of industry veterans with a strong background in both the pizza industry as well as the geographic territories. Blackstreet developed a strategy focused on achieving industry average unit volumes, improving cost controls, better utilizing marketing expenditures and opening new stores in the acquired territories.
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