Yum Unloads Pizza Hut Chain As Private Equity Takes On Turnaround Challenge
Yum! Brands agreed to sell its iconic Pizza Hut chain for $2.7 billion following a strategic review, separating the struggling pizza brand from its broader restaurant portfolio, which includes KFC, Taco Bell, and The Habit Burger Grill.
LongRange Capital will acquire Pizza Hut's business outside China for $1.5 billion, while Yum China will buy the China business for $1.2 billion. Both transactions are expected to close in the third quarter.
The Stamford, Connecticut-based private equity firm typically invests in middle-market businesses, usually with a longer-term, operationally focused approach.
Its current portfolio includes 24 Hour Fitness, Alpin Unlimited, Bakkavor, Batesville, and US Synthetic.
"These transactions enable Yum! to be a more focused company that continues to leverage scale, technology, and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders," said Chris Turner, Chief Executive Officer, Yum! Brands.
Turner added, "Under LongRange and Yum China, Pizza Hut will be well-positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and ...
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