Pizza Hut is getting a new owner: private equity firm LongRange buys chain in $1.5 billion deal
Yum! Brands is selling Pizza Hut for $2.7B, with LongRange Capital and Yum China taking over. Yum! will refocus on KFC, Taco Bell, and Habit Burger.
Yum! Brands has sold Pizza Hut in a $2.7 billion deal that will split the property between two buyers: PE firm LongRange Capital and Yum China Holdings.
Klaudia Radecka/NurPhoto via Getty ImagesYum! Brands has sold Pizza Hut amid declining sales and market competition challenges.LongRange Capital and Yum China Holdings will acquire the iconic chain in a $2.
7 billion deal.Yum! Brands will refocus on its other brands: KFC, Taco Bell, and Habit Burger.
Pizza Hut is getting a new owner after years of weak sales and growing questions about the future of one of America's best-known pizza brands.Yum! Brands said Tuesday it entered into agreements to sell Pizza Hut for $2.
7 billion, splitting the business between two buyers. LongRange Capital, a private equity firm, will acquire Pizza Hut outside mainland China for about $1.5 billion, while Yum China Holdings will buy the chain's mainland China business for about $1.
2 billion.The sale follows Yum's strategic review of Pizza Hut, which began last year after the chain posted its eighth consecutive quarter of same-store sales declines, Business Insider previously reported. At the time, Yum CEO Chris Turner said Pizza Hut needed "additional action" to unlock its full value and suggested that work "may be better executed outside Yum!
Brands."LongRange is pitching itself as a hands-on operator rather than a financial buyer. In a statement announcing the deal, the firm said it plans to invest in Pizza Hut's growth and build on its franchise system and global footprint.
Yum said Pizza Hut would be "well positioned for future growth" under LongRange and Yum China.Across the two transactions, Yum expects to receive about $2.3 billion in net proceeds after taxes, closing adjustments, and transaction-related fees, excluding a potential $75 million earn-out by 2030.
The company said it expects roughly $85 million in one-time costs to complete the separation.The deal comes as Pizza Hut faces challenges beyond slowing sales. Business Inside
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