Yum! Brands is divesting Pizza Hut in a deal valued at about $2.7 billion, selling the struggling pizza chain to private equity firm LongRange Capital and Yum China Holdings. Multiple outlets report that LongRange Capital will acquire Pizza Hut’s global operations, with one source specifying the transaction excludes China and is aimed at taking over the brand’s worldwide business outside that market. The sale of Pizza Hut’s China operations is handled separately, with Yum China Holdings set to purchase the China business for about $1.2 billion, while LongRange is reported to pay roughly $1.5 billion for the non-China operations.
The transaction is expected to close in the third quarter, according to Bloomberg. With Pizza Hut being sold, Yum! Brands says it will focus more on its other restaurant brands, particularly Taco Bell and KFC, which are described as performing better. Some coverage also notes that Habit Burger may be part of Yum’s renewed focus. The agreements represent the culmination of years of pressure on Pizza Hut’s performance.
