Yum Brands in exclusive talks to sell Pizza Hut to LongRange Capital

Yum Brands (NYSE:YUM) is in exclusive negotiations to sell its Pizza Hut chain to private equity firm LongRange Capital, according to sources familiar with the matter.

A definitive agreement between the two companies could close within a matter of weeks.

Competing suitors, including Sycamore Partners, were edged out after LongRange successfully secured an exclusivity agreement with Yum in recent days.

Representatives for Louisville, Kentucky-based Yum Brands, LongRange, and Sycamore all declined to comment on the ongoing discussions.

The active negotiations follow an announcement from Yum last year stating that it was reviewing strategic alternatives for Pizza Hut, including a potential divestiture.

The chain has structurally struggled to keep pace with the growth of Yum's other major fast-food banners, which include KFC and Taco Bell.

The formal auction process initially attracted broad interest from multiple institutional suitors, including Sycamore Partners, Apollo Global Management, and LongRange, before the exclusivity window was granted.

Following reports of the exclusive discussions, shares of Yum Brands climbed approximately 3% in extended trading.