BancBoston to sell Papa Gino's

May 8, 2003

BOSTON -- BancBoston Capital Inc., the private equity arm of FleetBoston Financial Corp., is selling Papa Gino's Holdings Corp., the Dedham, Mass.-based quick-service pizza and sub sandwich chain.

According to, BancBoston wants to pare back its $3.4 billion private equity portfolio, though it has been a busy private equity player in the restaurant industry.

"We made a good bet on restaurants a few years ago and are pursuing some exit strategies," a FleetBoston spokeswoman told TheDeal, declining to give specifics.

Asking price for the 170-store chain is $100 million, about six times EBITDA (earnings before interest, taxes, depreciation and amortization). BancBoston put Papa Gino's on the auction block about four weeks ago. U.S. Bancorp Piper Jaffray Inc. is handling the sale.

A BancBoston source told TheDeal that Papa Gino's growth prospects are good, mostly because of its sandwich business. The sandwich category is one of the hottest in all of foodservice.

Meanwhile, BancBoston Capital will retain its stakes in other restaurant concepts such as California Pizza Kitchen Inc., Marie Callender's, Burger King and Chili's restaurants.

Topics: Operations Management

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