Nation’s Restaurant News reports that Yum! Brands Inc. has signed definitive agreements to sell Long John Silver’s Inc. and A&W Restaurants Inc. to two separate groups of franchisees, the company said Thursday.
Terms of the deals were not disclosed.
The Louisville, Ky.-based Yum Brands, which also franchises KFC, Pizza Hut and Taco Bell, said Long John Silver’s would be sold to LJS Partners, a consortium of franchisees and other investors. A&W Restaurants will be sold to A Great American Brand, which Yum described as a “franchisee leader with substantial interest in A&W restaurants.”
Both sales are expected to be completed in the fourth quarter, Yum said.
“As we continue to sharpen our long-term growth focus on international expansion and improving our U.S. brand positions in KFC, Pizza Hut and Taco Bell, Long John Silver’s and A&W no longer fit our long-term growth strategy,” Yum Brands chairman and chief executive David Novak said in a statement.
Yum noted that the two sales would not have a material impact on corporate earnings or cash flow.
Goldman, Sachs & Co. acted as Yum’s exclusive financial advisor on the sales.
Read more: Nation’s Restaurant News