Yum China, which operates KFC, Pizza Hut and other restaurant brands in mainland China, is buying the Pizza Hut business in China for US$1.2 billion. Multiple reports say the deal is part of a wider restructuring by US-based Yum! Brands, as it separates its China operations from the rest of its global portfolio. Yum China will acquire ownership of Pizza Hut’s operations in the mainland market where it already runs the brand.
The transaction value is described as an all-cash payment, funded through a mix of existing cash reserves and debt financing. The sale is subject to customary closing conditions and is expected to close in the third quarter, according to reports.
Separately, other outlets report that Pizza Hut locations outside mainland China are being sold to LongRange Capital, with the US and other international operations transferring to that buyer. Overall, the agreement results in full control of Pizza Hut in China by Yum China, while Yum! Brands retains no ownership of the Pizza Hut China business after closing.
