Exclusive – Flynn Group, World’s Largest Franchise, Explores Sources of More than $5 Billion in Sales By Reuters

© Reuters. People walk by Taco Bell’s first digital-only U.S. Cantina location in Times Square in New York, USA, April 14, 2021. REUTERS/Shannon Stapleton/File Photo

Abigail Somerville

(Reuters) – Flynn Group, the world’s largest operator of restaurant and fitness club franchises, is exploring a majority stake sale worth more than $5 billion, including debt, according to people familiar with the matter.

Flynn Group, which operates Applebees, Taco Bell, Panera Bread (NASDAQ:), Arby’s, Pizza Hut, Wendy’s (NASDAQ:) and Planet Fitness (NYSE:) franchises, says it is collaborating with Bank of America on the sales process. The source said. .

San Francisco-based Flynn Group generates more than $450 million in annual revenue before interest, taxes, depreciation and amortization, according to sources.

The source, who requested anonymity, added that private equity funds and sovereign wealth funds are among those proposing to acquire majority stakes scheduled for sale.

Flynn Group investors Ontario Teachers’ Pension Plan (OTPP) and private equity firm Main Post Partners could sell some of their stakes and remain invested after the deal, the people said.

Flynn Group executives, who are also major shareholders, could do the same, the sources added.

OTPP owns about a third of Flynn Group, Main Post owns more than a third and Flynn executives own the remainder, 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 company operates more than 2,600 restaurants and fitness clubs in the U.S. and Australia and generates more than $4.5 billion in annual sales, according to its website.

In 2014, Ontario Teachers invested about $300 million in the company, valuing it at more than $1 billion.