Pizza Hut, a well-known restaurant chain, is set to be sold for $2.7 billion by its parent company Yum Brands. This decision comes after Yum Brands announced in February its consideration to sell Pizza Hut amidst plans to close 250 U.S. locations. The chain’s difficulties stem from outdated facilities and increased competition in the industry.

Pizza Hut was established in 1958 in Wichita, Kansas. The brand was acquired by PepsiCo in 1977, but later in 1997, PepsiCo’s restaurant segment was spun off to form Yum Brands. The new owner, private equity firm LongRange Capital, will purchase Pizza Hut for around $1.5 billion, excluding operations in mainland China. Meanwhile, Yum China Holdings Inc. will acquire the mainland China segment for approximately $1.2 billion.

Yum Brands CEO Chris Turner expressed optimism about the transition, stating that the new ownership under LongRange Capital and Yum China would provide Pizza Hut with the opportunity for growth, leveraging their expertise in the restaurant industry.

Yum Brands, which also manages KFC and Taco Bell, has been reviewing its strategic options for Pizza Hut since November due to declining comparable store sales. According to Neil Saunders, managing director of GlobalData, Pizza Hut has been a weaker element within Yum’s brand portfolio. Saunders noted that despite attempts to rejuvenate the brand and close underperforming restaurants, significant investments and patience are required to drive growth, which Yum Brands is unwilling to extend.

By divesting Pizza Hut, Yum Brands aims to concentrate efforts on its more successful brands. The transactions are expected to finalize in the third quarter. The company, headquartered in Louisville, Kentucky, observed a slight decline in its stock value prior to the announcement.