A customer enters a Pizza Hut restaurant in Princeton, Illinois.
Daniel Acker | Bloomberg | beautiful images
Flynn Restaurant Group put together a $ 816 million bid on the assets of NPC International, the operator of hundreds of Pizza Hut and Wendy’s restaurants.
The NPC, which also operates Wendy̵7;s sites, said Friday that it has agreed to accept the bid and will seek approval from the bankruptcy court. The deal will give Flynn, the largest restaurant franchise in the United States, NPC’s control of 1,300 Pizza Hut and Wendy’s restaurants and its shared service properties. It will be more than double the total number of Flynn’s restaurants.
Flynn, privately held, has annual revenues of about $ 2.3 billion and operates around 1,200 Applebee’s, Panera Bread, Arby’s and Taco Bell restaurants. The operator has agreed to provide basic employment to all of NPC’s more than 30,000 workers. Pizza Hut and Taco Bell are both owned by Yum Brands.
The NPC filed for Chapter 11 bankruptcy in July. Under the deal with Pizza Hut, about 300 of its inefficient locations would be permanently closed, but the rest of the property was for sale.
On Monday, Wendy’s said in a legal filing it was considering bidding for nearly 400 locations of the NPC-run burger chain. The bid will include new and existing eligible franchisees.
Due to the number of locations open for sale, the results of the auction can have a strong impact on Pizza Hut and Wendy’s business in the United States. Pizza Hut is in a turnaround phase and has previously stated that they are looking for a new owner with a “healthy balance sheet” and a “strong capital structure”.
Both chains discussed with the NPC the terms of the sales process, arguing about more scrutiny in choosing the next operator or operator of locations.
A hearing on November 13 will determine if Flynn’s stalking horse bid will be approved and a sale hearing will be held on December 4.