OVERLAND PARK Kan. NPC International, the largest Pizza Hut franchisee, has agreed to buy 99 units from franchisee Colonial Foods LLC in a deal valued at $35 million. The units are located in Virginia, West Virginia and Maryland.
The deal is expected to close in September, according to a statement from Jim Schwartz, NPC’s chief executive, who said the company would finance the deal through a revolving credit facility as well as cash.
The units include 50 dine-in restaurants, 46 delivery-carryout units and three stores that are co-branded with other brands affiliated with Pizza Hut’s franchisor, parent Yum! Brands Inc. of Louisville, Ky.
Merrill Lynch Global Private Equity acquired Overland Park-based NPC two years ago and has since purchased other Pizza Hut restaurants in three separate transactions. Last year, NPC recorded $679.5 million in systemwide sales from 887 restaurants in 24 states.