News

Merrill Lynch buys NPC, largest Pizza Hut franchisee

March 6, 2006

PITTSBURG, Kan.—Pizza Hut's largest franchisee, NPC International, Inc. has entered into a stock purchase agreement to sell 100 percent of its equity ownership to Merrill Lynch Global Private Equity, the private equity arm of Merrill Lynch.

According to a news release, the transaction, which has received approval in principle from Pizza Hut, Inc. and is expected to close this spring, is contingent upon financing and the receipt of usual and customary provisions and approvals. NPC will continue to operate its Restaurant Services Center in Pittsburg and its executive office in Lenexa, Kan. Senior management of NPC, other than O. Gene Bicknell, founder and chairman of the Board of NPC, will continue in their present positions upon completion of the transaction. Jim Schwartz, NPC's current chief executive, will remain in that post going forward.

"This transaction will provide the company the resources and support necessary to continue its heritage of providing unrivaled service and product to our loyal customers in the many markets in which we operate," said Bicknell, whose company operates 790 Pizza Hut outlets in 26 states. "In addition, I am especially pleased that the company will continue to leverage the outstanding services of our dedicated team in Pittsburg and Lenexa as the company has done for over 40 years retaining all of our restaurant support personnel in their present positions."