Yum! Brands agrees to sell the Pizza Hut chain to private equity firm LongRange Capital in a deal valued at about $2.7 billion, aimed at reshaping the company’s portfolio as Pizza Hut has struggled. Under the transaction, LongRange Capital is set to acquire Pizza Hut’s global operations excluding its China business, with the non-China portion priced at roughly $1.5 billion, according to multiple reports. The China operations are sold separately to Yum China Holdings for around $1.2 billion.
Several outlets say Yum! will use the proceeds to focus more on its other brands, particularly Taco Bell and KFC, which are described as better-performing. Business Insider also notes that other parts of Yum’s portfolio, including Habit Burger, are expected to receive increased attention.
Bloomberg reports the deal is expected to close in the third quarter. The combination of the LongRange purchase and the separate China sale is described as part of a multi-year effort by Yum! to address performance challenges at Pizza Hut.
