One of the most recognisable concepts in the UK casual dining market is to change hands.
Whitbread, the leisure group, has announced the sale of Pizza Hut UK back to US brand owner Yum! Brands in a deal worth £112m.
The disposal, which is subject to approval from EU competition authorities, is expected to be completed in late September, or early October.
After adjustments for debt and other liabilities, Whitbread will receive £99m in cash.
The Pizza Hut UK business, which comprises more than 650 outlets in the UK, was operated as a joint 50-50 venture between Whitbread and Yum.
It was established in 1982 between Whitbread and PepsiCo. Pepsico’s 50% shareholding was transferred to Yum as part of the demerger of PepsiCo’s KFC, Pizza Hut and Taco Bell interests in 1997.
Alan Parker, chief executive of Whitbread, said: “Our exit from this joint venture is further evidence of the continuing progress we are making towards becoming a leaner and more focused group, concentrating our management and capital on those owned business in which we have leading positions and strong growth prospects.”
The sale is the latest in a series of disposals, including the Marriott hotel business, its stake in Britvic and Maredo, the German brasserie chain.
Most recently the company sold 239 pub-restaurants to Mitchells & Butlers in a deal worth £497m.
