Apollo Global Management Edged Out of $1B Pizza Hut Sale by LongRange
APO•Apollo Global Management was among bidders for Yum Brands’ Pizza Hut chain but lost exclusivity to LongRange Capital in early June, with a sale expected in a matter of weeks. Pizza Hut’s own sales have hovered near $1 billion annually, limiting potential returns and narrowing Apollo’s restaurant investment pipeline.
1. Exclusive Sale Talks and Competing Bids
Yum Brands has entered exclusive negotiations to sell its Pizza Hut chain to private equity firm LongRange Capital, sidelining other bidders through an exclusivity agreement in early June. The deal could conclude within weeks, following a strategic review last year when Pizza Hut’s performance lagged behind other brands.
2. Implications for Apollo Global Management
Apollo Global Management, which showed interest alongside Sycamore and others, was edged out by LongRange and thus loses access to a chain generating roughly $1 billion in annual sales. This missed opportunity narrows Apollo’s pipeline for restaurant sector acquisitions and may prompt a shift to alternative deals.
