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NPC, Pizza Hut close restaurant deal
January 20, 2009
OVERLAND PARK, Kan. -- NPC International Inc. has closed the previously announced transactions in whichPizza Hut Internationalpurchased 42 Pizza Hut units from NPC for $19 million in cash and NPC purchased 55 Pizza Hut units from PHI for $18.5 million in cash.
The sale of the 42 units is expected to result in a material non-cash loss for NPC due to the anticipated write-down of intangible assets, including franchise rights and goodwill relating to the sold stores. NPC currently estimates that the amount of the pre-tax charge will range from $15 million to $19 million. The final charge will be determined following the completion of certain asset valuations and will be recorded in the fourth quarter of fiscal 2008.
The acquisition by NPC will be funded entirely with proceeds received from the sale of Pizza Hut units to PHI.
NPC International is the world's largest Pizza Hut franchisee and operates 1,111 Pizza Hut restaurants, 18 percent of the entire domestic Pizza Hut system.
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