$1.5 billion "bottom-fishing" for the former pizza king! Yum! Brands (YUM.US) spins off Pizza Hut, PE giant LongRange Capital takes over

According to Golden Ten Data APP, LongRange Capital has announced the completion of its acquisition of the Pizza Hut business from Yum! Brands (YUM.US). The transaction does not include the Pizza Hut business in Mainland China. The private equity firm has agreed to pay approximately $1.5 billion to acquire this iconic pizza chain brand.

Pizza Hut's interim CEO, Eduardo Luz, stated, “As an independently operated company, we are now completely focused on Pizza Hut’s customers, our franchisees, and the teams that bring vitality to the brand every day.” “With LongRange’s support and resources, as we enter a new chapter, we are ready to invest in the brand and uphold Pizza Hut’s illustrious history,” he added. Other major holdings of LongRange Capital include 24 Hour Fitness, Batesville, US Synthetic, and the Alpin Unlimited platform.

Pizza Hut’s history dates back to 1958 in Wichita, Kansas. By 1971, based on the number of stores and total sales, Pizza Hut had become the world’s largest pizza chain brand. The company debuted on the New York Stock Exchange in 1972 and began international operations later that decade.

PepsiCo (PEP.US) acquired Pizza Hut in November 1977 and, after holding it for 20 years, spun it off together with Taco Bell and KFC to form a new company called Tricon Global Restaurants, which was later renamed Yum! Brands.

Pizza Hut's peak occurred in the late 1980s. By 1990, the chain’s system sales reached $4 billion, with key innovations including the highly successful launches of products such as Personal Pan Pizza and Stuffed Crust Pizza.

Over the past decade, Pizza Hut's market share has been gradually eroded by Domino’s Pizza (DPZ.US) and Papa John’s (PZZA.US).