NPC International Inc., the nation’s largest Pizza Hut franchisee, said Monday it has agreed to a sale to private-equity firm Olympus Partners.
Terms of the deal were not disclosed, but sources told Bloomberg in September that major shareholder Bank of America was seeking $800 million. Stamford, Conn.-based Olympus said Monday it would not comment until after the deal is completed, which NPC said was expected before the end of the year.
Overland Park, Kan.-based NPC and its parent company, NPC Acquisition Holdings Inc., said in a statement that the acquisition is expected to be financed, in part, by a senior credit facility to be arranged through Barclays Capital and Goldman, Sachs & Co.
NPC, which operates 1,153 Pizza Huts in 28 states, also on Monday reported essentially flat year-over-year net income of $3.5 million for the third quarter, which ended Sept. 27. Revenue rose slightly to $237.9 million from $237.2 million in the prior-year quarter. Same-store sales increased 0.4 percent, rolling over a 10.9 percent increase in the third quarter last year.
“During the third quarter our comparable-store sales strengthened from the first half of the year returning to positive territory despite rolling over very strong comparable-store sales growth from the prior year,” Jim Schwartz, NPC’s president and chief executive, said in a statement.