Pizza Hut to be sold in two deals totaling $2.7bn
8 reported
Yum! Brands announced the sale of its struggling Pizza Hut chain for $2.7bn in two separate transactions. The parent company, which also owns KFC and Taco Bell, said in February it was considering selling Pizza Hut as the chain looked to close 250 US restaurants. Private equity firm LongRange Capital is buying Pizza Hut, excluding the mainland China business, for about $1.5bn. Yum China Holdings, Inc will purchase the mainland China Pizza Hut operations for approximately $1.2bn. Yum! Brands began a strategic review for Pizza Hut in November after the chain reported declining sales at comparable stores. The company expects both transactions to close in the third quarter.
What’s reported
Pizza Hut will be sold for $2.7bn by parent company Yum! Brands.
Yum! Brands said in February it was considering selling Pizza Hut and the chain looked to close 250 US restaurants.
Pizza Hut was founded in 1958 in Wichita, Kansas.
PepsiCo acquired the chain in 1977 and spun off its restaurant division, which became Yum! Brands, in 1997.
LongRange Capital is buying Pizza Hut, excluding mainland China, for about $1.5bn.
Yum China Holdings, Inc is buying the mainland China Pizza Hut for approximately $1.2bn.
Yum! Brands began a strategic review for Pizza Hut in November after declining sales at comparable stores.
Yum! Brands expects both transactions to close in the third quarter.
Key figures
Chris Turner, Yum! Brands CEO
Neil Saunders, managing director of GlobalData
Sources: The Guardian
