NPC International, Inc. Announces Agreement To Acquire 99 Pizza Hut Units From A Franchisee

Business Wire:

Consistent with NPC International, Inc.’s objective to continue growth in the Pizza Hut system, the Company announced today that it had signed an Asset Purchase Agreement with Colonial Foods, LLC and affiliates to acquire 99 Pizza Hut units, including 9 fee owned properties for $35.0 million. This acquisition will be funded with available cash and borrowings on the Company’s $75.0 million revolving credit facility.

The stores are comprised of 46 delivery/carry-out units, 50 dine-in restaurants and 3 Pizza Hut/YUM! Brands multi-brand locations and are located in the following contiguous states: Virginia (96), Maryland (2) and West Virginia (1). According to information provided to NPC, the units to be acquired by the Company generated $81.8 million in net product sales during the 52 weeks ended December 2007.

NPC expects the acquisition to close in September 2008. Consummation of the transaction is subject to approval by Pizza Hut, Inc. and Yum! Brands, Inc, satisfactory completion of confirmatory due diligence and other customary approvals.