Overland Park, KS (RestaurantNews.com) NPC International, Inc. announced today that it 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.
Cautionary Statement Regarding Forward-Looking Information
Certain statements contained in this news release that do not relate to historical or current facts constitute forward-looking statements. These may include statements regarding NPC’s or management’s intentions, expectations or predictions of future performance. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. NPC’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including lower than anticipated consumer discretionary spending; deterioration in general economic conditions; competition in the quick service restaurant market; adverse changes in food, labor and other costs; price inflation or deflation; the ability of NPC and other parties to acquisition transactions to satisfy the conditions to the closing of such transactions; the ability of NPC to obtain sale-leaseback financing on acceptable terms and other factors. All forward-looking statements made in this news release are made as of the date hereof. NPC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. Investors are cautioned not to place undue reliance on any forward-looking statements.