Directional Capital has bought Pizza Hut’s UK takeaways after the business moved to pre-pack.
Negotiations to buy the 139 Pizza Hut restaurants operating under Heart With Smart have ended with the chain selling out, which has secured around 3,000 jobs.
The American private equity company Directional Capital already manages Pizza Hut restaurants in Sweden and Denmark.
The deal follows the appointment of Will Wright and Chris Pole of Interpath as joint administrators of Heart With Smart Restaurants. After their appointment, Interpath immediately sold the company and its assets to DC London Pie, a company owned by Directional Capital.
The business was previously owned by Pizza Hut UK’s management team, led by CEO Jens Hofma, together with investor Pricoa. They had acquired it in 2018 for a reported £100 million.
The group has reportedly been looking for buyers since November to compensate for the effects of the tax increases announced in the fall budget.
Heart With Smart was one of 220 hospitality businesses to sign a letter to the Chancellor warning of potential job cuts and closures due to a looming rise in employer national insurance premiums.
Commenting on the deal with Directional Capital, Hofma said: “Over the last six years, we have made significant progress in building our business and strengthening our operations to become one of the UK’s leading hospitality franchise operators, whilst navigating a challenging economic environment. With the acquisition of Directional Capital announced today, the future of the business is secured with a strong base.
Dwayne Boothe of Directional Capital added: “This deal is an important milestone for Directional Capital as we continue to build the Directional Pizza platform into a leading food and beverage operator across the UK and Europe. Directional Pizza continues to invest in improving food and beverage across its 240+ growing locations in Europe and in Great Britain.
