Yum Sells 2 Fast-Food Chains (original) (raw)

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Yum Sells 2 Fast-Food Chains

By Dealbook

September 22, 2011 3:06 pm September 22, 2011 3:06 pm

Yum Brands announced on Thursday that it had found buyers for two fast-food chains, Long John Silver’s and A&W Restaurants. The prices were not disclosed.

Yum, which is better known for its KFC,Taco Bell and Pizza Hut franchises, put the two chains on the block in January. Yum has increasingly found growth abroad with its biggest brands, in China in particular, but both Long John Silver’s and A&W are smaller, United States-focused businesses.

“As we continue to sharpen our long-term growth focus on international expansion and improving our US brand positions in KFC, Pizza Hut and Taco Bell, Long John Silver’s and A&W no longer fit our long-term growth strategy,” David C. Novak, Yum’s chief executive, said in a statement.

Yum had acquired the parent company of Long John Silver’s and A&W for $320 million in 2002.

Long John Silver’s will be bought by LJS Partners, a consortium of franchisees and other investors.

A&W will be acquired by A Great American Brand, led by a franchisee with substantial interests in international A&W restaurants and the National A&W Franchisees Association representing A&W restaurant operators in the United States

The deals are expected to close in fourth quarter. Goldman Sachs advised Yum.

Shares of Yum were down 3 percent on Thursday amid a broad market sell-off.