Directional Capital has acquired Pizza Hut’s UK dine-in restaurants following the business entering pre-pack administration.
Negotiations to acquire the 139 Pizza Hut dine-in restaurants, operating under Heart With Smart, have concluded with the chain being sold out of administration, securing around 3,000 jobs.
The US-based private equity firm Directional Capital already manages Pizza Hut restaurants in Sweden and Denmark.
The deal comes after Will Wright and Chris Pole from Interpath were appointed as joint administrators of Heart With Smart Restaurants. Following their appointment, Interpath immediately sold the business 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 chief executive Jens Hofma, along with investor Pricoa. They had acquired it in 2018 for a reported £100 million.
The group had reportedly been seeking buyers since November to offset the impact of tax hikes announced in the autumn budget.
Heart With Smart was one of 220 hospitality businesses that signed a letter to the chancellor, warning of potential job cuts and closures resulting from the impending increase in employer National Insurance Contributions.
Commenting on the deal with Directional Capital, Hofma said: “Over the past six years, we have made great progress in building our business and strengthening our operations to become one of the UK’s leading hospitality franchise operators, all while navigating a challenging economic backdrop. With the acquisition by Directional Capital announced today, the future of the business has been secured with a strong platform in place.”
Dwayne Boothe from Directional Capital, added: “This transaction marks an important milestone for Directional Capital as we continue to build the Directional Pizza platform into a premier food and beverage operator throughout the UK and Europe. Directional Pizza continues to invest in improving food and beverage across its growing 240-plus locations in Europe and the UK.'
