DivestmentJun 16, 2026, 05:21 PM
Yum! Brands Sells Global Pizza Hut Business for $1.488B
AI Summary
Yum! Brands, Inc. has entered into an Equity Purchase Agreement to sell its global Pizza Hut business (excluding the People's Republic of China) to Toppings TopCo, LLC. The transaction is valued at $1.488 billion in cash, with potential for an additional $75 million earn-out based on future financial performance. The sale is subject to customary closing conditions, including regulatory approvals and a pre-closing reorganization, and is expected to close by September 16, 2026.
Key Highlights
- Yum! Brands agreed to sell its global Pizza Hut business (excluding PRC) to Toppings TopCo, LLC.
- The aggregate purchase price is $1,488,000,000 in cash, subject to adjustments.
- Company is eligible for an additional $75,000,000 earn-out if financial targets are met by fiscal year-end 2027, 2028, or 2029.
- The transaction involves the sale of equity interests in several Pizza Hut entities after pre-closing reorganization.
- Closing is subject to HSR Act expiration/termination, other antitrust approvals, and completion of reorganization steps.
- The Purchase Agreement includes a five-year non-competition covenant and an eighteen-month non-solicitation provision.
- Ancillary agreements include a transition services agreement and an intellectual property cross-license and joint ownership agreement.
- Either party can terminate if closing does not occur by September 16, 2026, with potential extensions.
Price Impact
More from YUM