Om Pizza & Eats Pvt Ltd, the Indian franchisee of Papa John's International, today acquired local rival Pizza Corner for an undisclosed sum.
Atulya Mittal, a nephew of steel tycoon Lakshmi Mittal, is the promoter of Om Pizza & Eats Pvt Ltd.
"Papa John's today announced that they have entered into an agreement for the merger of Pizza Corner stores in South India. Papa John's will convert the existing Pizza Corner stores to Papa John's branded restaurants through Q1 2015," the company said in a statement.
Pizza Corner brand will cease to exist and all its stores will be re-branded as Papa John's.
When contacted, Papa John's India CEO Joseph Cherian said, "The merger provides us the opportunity to penetrate the market at a much more rapid pace, and increase our scale in a shorter period. This merger will create India's third largest pizza chain."
Global Franchise Architects, which operates Pizza Corner brand, will get 'significant' shareholding in the merged entity, Cherian added. However, details of the transaction are not known.
"The strength of Pizza Corner in South India will allow Papa John's to capture opportunities in this attractive market," the statement said.
Pizza Corner has 70 outlets in Southern India, Papa John's has 15 restaurants across India.
Global Franchise Architects's operations for its other brands - Cream & Fudge, Coffee World and The Donut Baker will remain in Bangalore and work independently of Papa John's.
