Whitbread sells Pizza Hut stake to partner Yum! Restaurants

Whitbread has sold its 50% stake in Pizza Hut UK to American group Yum! Restaurants for £112m.

Yum! is the American owner of Pizza Hut but is a 50/50 franchise partner with Whitbread at the group's 600 UK sites.

The deal, which is expected to complete by October this year, is believed to have been on the table for some time and was first reported in Caterer over a year ago.

Whitbread chief executive Alan Parker said: "Our exit from this joint venture is further evidence of the continuing progress we are making towards becoming a leaner and more focussed group."

Last July, a Caterer source said a buyout was on the cards and pointed to the fact that Yum! had done similar deals in other countries as part of a strategy of buying out franchise partners.

The source added the relationship between Whitbread and Yum! had run its course.

"The original reason for the joint venture was that Whitbread was growing restaurant brands and its experience of the UK market was useful to Yum! That's no longer the case," they said.

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By Tom Bill

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