00:00Bloomberg has learned that Yum! Brands is in exclusive talks to sell its Pizza Hut chain to Long Range Capital.
00:05So Michelle Davis, our Bloomberg Deals reporters here with more.
00:08Who is Long Range and why does Yum! want to sell Pizza Hut?
00:11So Long Range was kind of the dark horse here because, as you mentioned, a lot of people don't know
00:15who they are exactly.
00:16They were established in 2019.
00:18Their founder, Bob Berlin, actually has some experience investing in the restaurant space he bought.
00:22He invested in Arby's years ago.
00:25And they basically beat out huge competitors, including Sycamore and Apollo, to enter exclusive talks to buy Pizza Hut.
00:32Well, how would this fit into their portfolio?
00:33Saying the Scarlet Russell, they own like a place in Kitzbühel and other sort of random things.
00:37How does Pizza Hut make sense for a deal for them?
00:39So part of the rationale here is that Yum! Brands owns Pizza Hut now, obviously, but they also own KFC,
00:46Taco Bell.
00:47Pizza Hut's been kind of a laggard, generating only a billion of revenue every single year.
00:51And that's been really, really stable.
00:52So for a private equity firm like Long Range, it means recurrent revenue and taking it out of the private
00:58eye means they'll be able to, you know, put some TLC, give it some TLC to help turn it around.
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