Struggling Pizza Hut chain to be sold for $A3.8 billion
The struggling Pizza Hut restaurant chain is to be sold by parent company Yum Brands for US$2.7 billion ($3.8 billion).
Yum Brands said the pizza chain is struggling with outdated stores and increased competition.
Private equity firm LongRange Capital will acquire Pizza Hut, excluding the business in mainland China, for about $1.5 billion.
Mainland China Pizza Hut will be acquired by Yum China Holdings for about $1.2 billion, LongRange Capital said.
“Under the management of LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership bringing deep expertise in the restaurant industry,” Yum Brands CEO Chris Turner said in a statement.
Pizza Hut was founded in Wichita, Kansas, in 1958. PepsiCo acquired the chain in 1977 but spun off its restaurant division, which became Yum Brands in 1997.
Yum Brands, whose other brands include KFC and Taco Bell, began a strategic review to explore Pizza Hut options in November, and the chain reported declining sales at similar stores.
Yum Brands, based in Louisville, Kentucky, expects both transactions to close in the third quarter.
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