$1.5 billion "bottom-fishing" the former king of pizza! Yum China (YUM.US) spins off Pizza Hut, and PE giant LongRange Capital takes over.

LongRange Capital announced that it has completed the acquisition of the Pizza Hut business from Yum! Brands, Inc. (YUM.US). This transaction does not include the Pizza Hut business in mainland China. The private equity investment firm agreed to pay approximately $1.5 billion to acquire this iconic pizza chain brand. Acting CEO Eduardo Luz stated, "As an independently operated company, we are now fully focused on Pizza Hut's customers, our franchisees, and the team that brings this brand to life every day. He added, With the support and resources from LongRange, we are ready to invest in the brand and carry on the proud legacy of Pizza Hut as we embark on this new chapter. Other major investments in LongRange Capital's portfolio include 24 Hour Fitness, Batesville, US Synthetic, and the Alpin Unlimited platform. Pizza Hut's history dates back to 1958 in Wichita, Kansas, and by 1971, it had become the largest pizza chain in the world by both number of locations and total sales. The company went public on the New York Stock Exchange in 1972 and began its international operations in the late 1970s. PepsiCo, Inc. (PEP.US) acquired Pizza Hut in November 1977 and spun it off along with Taco Bell and KFC after holding it for 20 years, forming a new company called Tricon Global Restaurants, which later changed its name to Yum! Brands, Inc. Pizza Hut's peak occurred in the late 1980s. By 1990, the chain's system sales reached $4 billion, with key innovations including the successful launch of star products like Personal Pan Pizza and Stuffed Crust Pizza. Over the past decade, Pizza Hut's market share has been steadily encroached upon by Domino's Pizza, Inc. (DPZ.US) and Papa John's (PZZA.US).