A week after announcing a plan to acquire 24 Wendy's restaurants in the Kansas City, Mo., market, NPC International is adding even more to its portfolio.
NPC International, the world's largest Pizza Hut franchisee, announced today that its wholly owned subsidiary, NPC Quality Burgers Inc., has entered into an Asset Purchase Agreement (APA) with Value Foods Company LLC to acquire 13 franchised Wendy's restaurants for $11.0 million, plus amounts for working capital. This acquisition will be funded entirely with available cash reserves.
The units being sold include six fee-owned locations, which will be leased from an affiliate of Value Foods. The restaurants will be owned and operated by NPC Quality Burgers Inc.
These units are also located in the Kansas City metropolitan area. According to information provided to NPC, the units to be acquired generated $15.7 million in net product sales during the 52 weeks ended December 2012.
NPC expects the closing to occur by August 2013. Consummation of the transaction is subject to approval by The Wendy's Company and satisfaction of customary closing conditions.
"We are very excited about this acquisition, in part, because it fits perfectly with our pending acquisition of Wendy's restaurants in the Kansas City metropolitan area announced last week," said Jim Schwartz, chairman and CEO of NPC International. "These stores have been well operated by franchisee Dave Merola and his team at Value Foods and we look forward to furthering this legacy of great customer service. We remain keenly interested in growing our presence in the Wendy's system."
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