Key facts
- Yum Brands is selling its U.S. Pizza Hut business.
- The sale includes Pizza Hut businesses globally, excluding China.
- LongRange Capital is acquiring the U.S. and international Pizza Hut businesses.
- The approximate sale price is $1.5 billion.
- Yum China will acquire full brand rights for mainland China.
- The deal is expected to close in the second half of the year.
Yum Brands has announced the sale of its U.S. Pizza Hut business to private equity firm LongRange Capital for approximately $1.5 billion. The deal also encompasses Pizza Hut operations in the rest of the world, with the notable exclusion of mainland China. This strategic divestiture is a component of a larger, multi-faceted transaction that will see Yum China secure full brand rights for the Chinese market. The sale is expected to allow Yum Brands to concentrate on its most promising growth avenues and simplify its operational structure. LongRange Capital, a private equity firm, will assume control of the U.S. Pizza Hut entities as part of this significant acquisition. The financial terms indicate a substantial valuation for the Pizza Hut U.S. business and its international counterparts, excluding China. This move signals a shift in Yum Brands' global strategy, emphasizing a more focused approach to market development and brand management. Yum China's acquisition of exclusive rights in mainland China further underscores the company's commitment to that key region. The transaction is anticipated to be completed in the second half of the year, pending customary closing conditions.