~ by Jon James
Yum Brands is selling Pizza Hut in a pair of deals worth about $2.7 billion, ending decades of ownership of the struggling pizza chain.
This restaurant has been a staple in Maine since most of us were kids. They’re just a short drive from just about anywhere, save for the North Maine Woods.
Private equity firm LongRange Capital will acquire Pizza Hut’s operations outside mainland China for roughly $1.5 billion, while Yum China will purchase the mainland China business for about $1.2 billion.
The sale follows a strategic review launched last year as Pizza Hut faced declining sales, aging restaurants and increased competition. Industry analyst Neil Saunders described Pizza Hut as the weakest brand in Yum’s portfolio, saying a turnaround would require more investment and patience than the company was willing to commit.
Yum Brands, which also owns KFC and Taco Bell, said the move will allow it to focus on its stronger-performing brands. The transactions are expected to close during the third quarter.
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