Allegro acquires Pizza Hut Australia

Financial terms of the deal were not disclosed. The management team includes Peter Rodwell, Lisa Ransom and Chris Leslie, who will take up positions in the company as executive chairman, CEO and chief operating officer, respectively. They will also have equity participation.

The deal coincides with a spin-out of Yum's Pizza Hut licensing rights in China to an independent company backed by Primavera Capital and Ant Financial Services.

Allegro will develop the chain's Australian franchisee by focusing on customer relations, embracing digital innovations, establishing new stores, and building economies of scale to boost market share.

Pizza Hut is the largest pizza restaurant company worldwide with about 16,000 stores, but it is believed to control only 10-25% of Australia's $2.8 billion pizza market with 270 locations in the country. By comparison, Domino's Pizza, which has made Australia its largest international franchisee, operates some 600 restaurants domestically.

"Our immediate focus will be strengthening the network of Pizza Hut stores across Australia through increased investment, resources and management focus," Chester Moynihan, Allegro's founding partner, said in a statement. "Pizza Hut has been a household name in Australia since the early 1970s. It was one of the first pizza companies to home deliver in Australia and we want to revive this innovative legacy to enhance the experience for customers."

Established in 2004, Allegro focuses on turning around distressed mid-market businesses in Australia and New Zealand, with more than A$650 million ($499 million) in funds under management. It closed its second fund last year at A$180 million.

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• Topics
• Australasia
• Consumer
• Buyouts
• Credit/Special Situations
• Australia
• Allegro Funds