Aug. 8, 2008, Overland Park, Kan. – The Company has
announced that it had signed an Asset Purchase Agreement with
Colonial Foods, LLC and affiliates to acquire 99 Pizza Hut units,
including 9 fee owned properties for $35.0 million. This acquisition
will be funded with available cash and borrowings on the Company’s
$75.0 million revolving credit facility.
Aug. 8, 2008, Overland Park, Kan. – Consistent with NPC International, Inc.’s
objective to continue growth in the Pizza Hut system, the Company has
announced that it had signed an Asset Purchase Agreement with
Colonial Foods, LLC and affiliates to acquire 99 Pizza Hut units,
including 9 fee owned properties for $35.0 million. This acquisition
will be funded with available cash and borrowings on the Company’s
$75.0 million revolving credit facility.
The stores are comprised of 46 delivery/carry-out units, 50 dine-in
restaurants and 3 Pizza Hut/YUM! Brands multi-brand locations and are
located in the following contiguous states: Virginia (96), Maryland (2)
and West Virginia (1). According to information provided to NPC, the
units to be acquired by the Company generated $81.8 million in net
product sales during the 52 weeks ended December 2007.
NPC expects the acquisition to close in September 2008. Consummation of
the transaction is subject to approval by Pizza Hut, Inc. and Yum!
Brands, Inc, satisfactory completion of confirmatory due diligence and
other customary approvals.
Jim Schwartz, Chairman and CEO of NPC International, Inc. said, “We
are very excited about this acquisition, in part, because it fits
perfectly with our mid-Atlantic operations in North Carolina and
Delaware. In addition, these stores have been well operated historically
and are located in a region of the country where Pizza Hut has a strong
brand presence. We look forward to working with the team at Colonial
Foods to complete a successful and seamless acquisition for the benefit
of the restaurant teams and most importantly, the loyal Pizza Hut
customers in these markets.
“As stated previously, we remain keenly
interested in growing our presence in the Pizza Hut brand. This
acquisition, if successful, would bring the total number of Pizza Hut
units acquired to 214 over 4 transactions since our acquisition by
Merrill Lynch Global Private Equity in May of 2006. Going forward we
will remain active in the acquisition of select markets that meet our
investment objectives for this great brand as they become available.”
NPC International, Inc. is the world’s largest
Pizza Hut franchisee and operates 887 Pizza Hut restaurants and
delivery/carryout units in 24 states.
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