NPC International asking price: at least $ 725 million


NPC International is asking at least $ 725 million for the sale of its Wendy’s and Pizza Hut businesses, according to plans filed with bankruptcy court earlier this week.

The franchise giant, which declared bankruptcy in July, said in a plan filed with the court that it would seek at least $ 400 million for its Wendy’s operations and at least $ 325 million for its Pizza Hut business.

But NPC’s bankruptcy plan also gives the company some flexibility. He could sell the whole business as a single entity if a buyer is interested and that offers a better return. If it cannot find buyers, NPC could also restructure its debt through bankruptcy proceedings.

The reorganization process could mean a number of options for NPC, one of the country’s largest operators of any kind and the largest franchisee for Wendy’s and Pizza Hut.

NPC declared bankruptcy with $ 900 million in debt after several months of work on a possible reorganization. Much of this debt was contracted in 2018 when NPC was sold to two investment firms, Delaware Holdings and Eldridge Investment Group.

The franchisee’s Wendy’s units performed better, given the better performance of this brand in recent years. The Company’s Pizza Hut units have struggled in large part because NPC operates a large number of full-service units. Many of them are closed after the operator has reached an agreement with the franchisor to nearly 300 Pizza Hut units. These closures were to help pave the way for a potential sale of the remaining restaurants.

NPC said in its file that it began marketing its Wendy’s business and chose to continue with a formal sales process after reviewing potential buyers. The company operates approximately 400 Wendy’s branches. The operator said it is looking to sell these Wendy’s restaurants “subject to a minimum purchase price of $ 400 million, in order to achieve a value maximization result for stakeholders at scale. of the company “.

Closures of Pizza Hut restaurants would give NPC 900 of those locations.

NPC could, however, choose to restructure if it cannot find a buyer for all or part of its restaurants. The plan would include a “significant capital investment” that would reduce debt and increase liquidity.



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