Bank of America Corp., which has been divesting itself of assets in recent months, agreed to sell its stake in the largest Pizza Hut Franchisee to private-equity firm Olympus Partners in a deal valued at around $755 million, according to someone familiar with the matter.
Bank of America gained the stake in NPC International Inc. when it purchased Merrill Lynch amid the financial crisis. Merrill Lynch first purchased 90% of NPC in 2006. The deal likely will net Bank of America between $375 million and $400 million, according to this person, who said the firm will return more than two and a half times the original $160 million investment.
With the economy still in the doldrums, Pizza Hut, with specializes in midpriced fare, has expanded revenue and cash flow, this person said. The sales process began in June to sell the NPC stake. The deal slowed as credit markets came under pressure, but amid recent improvement, Olympus obtained financing, according to the person.
"The sale is consistent with our strategy of selling noncore assets that don't fit with our customer-focused strategy," said a spokesman for Bank of America.
