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(Sharecast News) - Yum Brands said on Tuesday that it has agreed to sell Pizza Hut for $2.7bn in two separate transactions.
The company will sell Pizza Hut excluding mainland China to private equity firm LongRange for $1.5bn, while the mainland China business will be sold to Yum China for $1.2bn.
Yum Brands said the sale provides the strongest path to maximise shareholder value while providing Pizza Hut an ownership structure "tailored to its distinct markets, competitive strengths and long-term priorities under leadership with significant relevant QSR (Quick Service Restaurant) experience".
Yum Brands chief executive Chris Turner said: "These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders.
"Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry. Pizza Hut is one of the most iconic restaurant brands in the world, and we are proud of the important role it has played in Yum!'s history. Pizza Hut was built by the passion and dedication of our team members, employees and franchisees, and we're excited for the next chapter."
Yum Brands - which also owns KFC, Taco Bell and Habit Burger & Grill - expects both transactions to close in the third quarter of this year.
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