Flynn Restaurant Group finally completed the sales process of the acquisition NPC International’s Restaurants on January 7th, with the deal still to be approved. During the auction process, Flynn Restaurant Group – already the largest group of franchisees on the Times 200 franchise list of restaurant franchisees – offered the entire company as a “stalking horse” bidder, setting the lower bid limit at $ 816 million. This process was soon canceled and after much negotiation a deal appears to have been reached.
The Flynn Restaurant Group will take over all of the 925+ Pizza Hut restaurants, compared to the 1,229 NPC reported in late 2019. Flynn will also acquire nearly 200 Wendy locations in Salt Lake City, Central Maryland and two Baltimore-area markets. In total, Flynn paid $ 522.5 million for the restaurants. If the deal is approved, Flynn will become the largest operator of Pizza Hut, Applebee’s, and Arby’s. The company also operates more than 130 Panera locations and more than 260 Taco Bell locations.
The $ 522.5 million deal is roughly $ 475,000 per restaurant, including Pizza Hut and Wendy’s. And there are other fees. Flynn will also pay for cash, inventory, and $ 8 million in prearranged construction costs for the many NPC restaurants under construction at the restaurant level. NPC acquired 140 Wendy’s restaurants in 2017 under an aggressive update agreement.