(LOUISVILLE, KY) - Yum Brands has agreed to sell Pizza Hut in a deal valued at approximately $2.7 billion.
The company announced that private equity firm LongRange Capital will purchase Pizza Hut operations outside mainland China for about $1.5 billion. Yum China Holdings will acquire the mainland China business for approximately $1.2 billion.
Yum Brands said it began exploring options for Pizza Hut last November. The company reported global sales growth of 5 percent last year, while Pizza Hut sales declined 2 percent.
Pizza Hut operates nearly 20,000 restaurants worldwide. Earlier this year, Yum Brands announced plans to close 250 Pizza Hut locations in the United States.
Founded in Wichita, Kansas, in 1958, Pizza Hut grew into the world's top-selling pizza chain by 1971. In recent decades, the company has faced increasing competition from delivery-focused rivals and changing consumer habits.
Yum Brands Chief Executive Officer Chris Turner said the sale will allow the company to focus on brands with stronger sales performance while positioning Pizza Hut for future growth under new ownership.
The transaction is expected to close during the third quarter of this year.