A buyer enters a Pizza Hut restaurant in Princeton, Illinois.
Daniel Acker | Bloomberg | Getty Photos
Flynn Restaurant Group has put collectively a stalking horse bid of $816 million for the belongings of NPC Worldwide, the operator of tons of of Pizza Hut and Wendy’s eating places.
NPC, which additionally operates Wendy’s places, stated Friday that it has agreed to just accept the bid and can search approval from the chapter courtroom. The deal would give Flynn, the biggest restaurant franchisee in the US, management of NPC’s 1,300 Pizza Hut and Wendy’s eating places and its shared providers belongings. It might greater than double Flynn’s complete restaurant footprint.
Flynn, which is privately held, has about $2.3 billion in annual gross sales and operates about 1,200 Applebee’s, Panera Bread, Arby’s and Taco Bell eating places. The operator has has agreed to supply employment to considerably all of NPC’s greater than 30,000 employees. Pizza Hut and Taco Bell are each owned by Yum Brands.
NPC filed for Chapter 11 chapter in July. As a part of an settlement with Pizza Hut, about 300 of its under-performing places will shut completely, however the remainder of its belongings had been put up on the market.
On Monday, Wendy’s stated in a regulatory submitting that it was contemplating bidding on the practically 400 places of the burger chain that had been operated by NPC. The bid would come with pre-qualified new and current franchisees.
Due to the variety of places up on the market, the end result of the public sale may have a drastic impression on Pizza Hut and Wendy’s U.S. companies. Pizza Hut is in the midst of a turnaround and has previously said that it’s on the lookout for a brand new proprietor with a “wholesome stability sheet” and a “robust capital construction.”
Each chains sparred with NPC over the phrases of the sale course of, arguing for extra oversight in deciding on the following operator or operators of the places.
A listening to on Nov. 13 will decide if Flynn’s stalking horse bid is authorized, and a sale listening to shall be held Dec. 4.