Yum! Brands, Inc. Announces Sale of Global Pizza Hut Business

Yum! Brands, Inc. has entered into an Equity Purchase Agreement to sell its global Pizza Hut business, excluding operations in China, to Toppings TopCo, LLC for $1.488 billion in cash. An additional $75 million in contingent consideration may be earned based on future financial performance. The transaction is subject to customary closing conditions, including antitrust approvals. Concurrently, Yum! Brands has agreed to sell the Pizza Hut business in the People's Republic of China to Yum China Holdings, Inc. for $1.2 billion in cash. This sale is structured as the purchase of equity interests in a subsidiary holding the PRC Pizza Hut business and is subject to certain closing conditions. The net proceeds from both transactions will be used for investments in the business and returning capital to shareholders, supported by a new $4 billion share repurchase authorization. The company has also entered into ancillary agreements, including a transition services agreement and an intellectual property cross-license agreement, to facilitate the separation and ongoing operations.