Overland Park / KS. (npc) Consistent with NPC International Inc.´s objective to continue its growth within the Pizza Hut system, NPC announced that it had entered into an Asset Sale Agreement (ASA) with Pizza Hut Inc. and affiliates (PHI) pursuant to which NPC has agreed to purchase from PHI 36 Pizza Hut units for 18,8 million USD 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 100,0 million USD revolving credit facility. The units to be acquired pursuant to the ASA are located in and around Jacksonville, Florida 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 USD in net product sales during the 53 weeks ended December 2011; the remaining six units to be acquired are not included in these results because none of these units was 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.
NPC International was founded in 1962 and operates 1’151 Pizza Hut units in 28 U.S. states with significant presence in the Midwest, South and South-east. As of the third quarter of 2011, the Company´s operations represented approximately 19 percent of the domestic Pizza Hut restaurant system and approximately 21 percent of the domestic Pizza Hut franchised restaurant system as measured by number of units, excluding licensed units which operate with a limited menu and no delivery in certain of the Company´s markets. Parent company of the Pizza Hut franchise system is Yum! Brands Inc. with headquarter in Louisville, Kentucky.
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