Yum Brands sells Pizza Hut to private equity firm LongRange Capital for $2.7 billion
LongRange Capital will buy Pizza Hut outside mainland China for $1.5 billion, while Yum China takes the China business as sales keep falling.
- On Tuesday, Kentucky-based Yum Brands announced it is selling Pizza Hut in two separate transactions for a total of $2.7 billion. Private equity firm LongRange Capital will acquire the global business, excluding mainland China, for about $1.5 billion.
- Yum Brands, which also operates KFC and Taco Bell, initiated a strategic review of the struggling chain in November. The company sought new ownership after Pizza Hut faced declining comparable sales, outdated stores, and increased competition.
- The mainland China Pizza Hut will be purchased by Yum China Holdings Inc. for approximately $1.2 billion. Additionally, the chain previously looked to close 250 U.S. restaurants to restructure the business.
- Both transactions are expected to close in the third quarter, Yum Brands announced. Yum Brands CEO Chris Turner stated the new ownership will position the chain for growth by bringing "deep expertise in the restaurant industry."
- Founded in 1958 in Wichita, Kansas, the chain was acquired by PepsiCo in 1977 before the 1997 spinoff. Neil Saunders, managing director of GlobalData, noted that "Pizza Hut has long been the weak link in Yum's portfolio.
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Fresh from the oven: How much is one of the world’s biggest pizza chains selling for?
Yum! Brands agrees to sell Pizza Hut to LongRange Capital for $2.7 billion after years of falling US sales, clearing the way for the owner of KFC and Taco Bell to focus on faster-growing brands
The troubled restaurant chain Pizza Hut will be sold for $2.7 billion by its parent company, Yum Brands. Private capital firm LongRange Capital is buying Pizza Hut, except for its businesses in China, for about $1.5 billion, reported the company on Tuesday. Pizza Hut in China will be purchased by Yum China Holdings Inc. for about $1.2 billion, he said. Yum! Brands started a strategic review to explore options for Pizza Hut in November, after the…
Pizza Hut, one of the most emblematic names of American fast food, will change hands after almost seven decades of history. Yum Brands announced this Tuesday the sale of the chain for 2.7 billion dollars, in an operation that marks the end of an era for the company that once led the global pizza business. The transaction, referred to by AP, will divide the business into two parts. LongRange Capital investment firm will acquire Pizza Hut outside …
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