NPC International Inc., the largest Pizza Hut franchisee in the country with 1,153 restaurants in 28 states, has announced that its parent company, NPC Acquisition Holdings LLC, has been sold to Olympus Partners.
As part of the definitive purchase and sale agreement, Olympus will acquire all of the issued and outstanding equity interests for an undisclosed amount.
All of the company's funded indebtedness is to be repaid by the purchaser at the closing of the sale of the equity interests. The transaction is subject to customary closing conditions, including certain regulatory approvals, and is currently expected to close by the end of fiscal 2011.
Olympus Partners is a Stamford, Conn.-based private equity firm focused on providing equity capital for middle market management buyouts and for companies needing capital for expansion.
According to Bloomberg, Bank of America Corp. agreed to sell the franchisee as CEO Brian T. Moynihan shifts focus more to retail and commercial banking customers while scaling back operations acquired under his predecessor, Kenneth D. Lewis.
Bank of America Corp. inherited NPC in its 2009 takeover of Merrill Lynch & Co., which bought the pizza purveyor in May 2006 for $615 million.
JP Morgan Securities LLC is acting as financial advisor and Shearman and Sterling LLP is acting as legal advisor to the parent company.
Read more about franchising.