NPC International, Inc. has completed the acquisition of 36 Pizza Hut units including five fee-owned properties located primarily in and around Jacksonville, Florida for $18.8 million from Pizza Hut, Inc. According to information provided to NPC, 30 of the units acquired generated $27.8 million in net product sales during the 53 weeks ended December 2011; the remaining six units acquired are not included in these results because none of these units were open and/or under PHI management for a full year.
The transaction was funded by approximately $15 million of available cash reserves and borrowings on the Company’s $100.0 million revolving credit facility.
NPC International, Inc. is the largest Pizza Hut franchisee and the largest franchisee of any restaurant concept in the United States (U.S.) according to the 2010 “Top 200 Restaurant Franchisees” by Franchise Times. The Company is also the eighth largest restaurant unit operator in the U.S. according to the 2011 “Chain Restaurant Industry Review” by GE Capital, Franchise Finance. The Company was founded in 1962 and operates 1,187 Pizza Hut units in 28 states with significant presence in the Midwest, South and Southeast. As of the third quarter of 2011, the Company’s operations represented approximately 19% of the domestic Pizza Hut restaurant system and approximately 21% 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.