Yum Brands has agreed to sell Pizza Hut for $2.7 billion in a split deal. Private equity firm LongRange Capital will pay roughly $1.5 billion for all Pizza Hut operations outside mainland China, while Yum China Holdings will acquire the China business for approximately $1.2 billion. After taxes and adjustments, Yum expects net proceeds of about $2.3 billion, excluding a potential $75 million earn-out from LongRange by 2030, and will absorb one-time separation costs of roughly $85 million. The board also approved a $4 billion share repurchase authorization, signaling a focus on higher-growth brands KFC and Taco Bell. Both transactions are expected to close in the third quarter, pending regulatory approval.
Yum! Brands IncYum Brands sells Pizza Hut for $2.7B, netting ~$2.3B, and authorizes $4B buyback, focusing on higher-growth brands.
Yum China Holdings IncYum China acquires Pizza Hut China for $1.2B, expanding its portfolio.