News

Pizza Hut's largest franchisee acquires 36 more units

January 19, 2012

NPC International Inc., the largest franchisee of any restaurant concept in the U.S., continues to grow its footprint with the new acquisition of 36 Pizza Hut units from Pizza Hut Inc. (PHI) and affiliates.

The company already operates 1,151 Pizza Hut units throughout the Midwest, South and Southeast regions.

NPC's Asset Sale Agreement (ASA) outlines the purchase for $18.8 million in cash, plus an additional amount for inventory, prepaids and store cash.

The units being acquired include five fee-owned locations. This acquisition will be funded with available cash on hand and borrowings from the company's $100 million revolving credit facility.

The units to be acquired pursuant to the ASA are located in and around Jacksonville, Fla., and are comprised of 27 delivery/carry-out units and nine dine-in restaurants.

According to information provided to NPC, 30 of the units to be acquired generated $27.8 million in net product sales during the 53 weeks ended December 2011; the remaining six units are not included in these results because they haven't been open and/or under PHI management for a full year.

NPC expects the closing to occur in February 2012 and it is subject to obtaining customary approvals.

"We are very excited to add this market to our portfolio and look forward to joining forces with the operations team in Jacksonville. These units are a perfect fit within our current geographical footprint which will allow us to leverage our existing operational infrastructure and expand our presence in the Florida market," said Jim Schwartz, chairman and CEO of NPC International.

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