Allegro Funds’ turnaround at Pizza Hut Australia looks just about complete, with the private equity firm preparing to hang up the for sale sign and seek a growth-minded buyer.
Six years after taking the reins, and after a lengthy restructure, it is understood Allegro Funds has hired Miles Advisory and had the firm’s dealmakers preparing potential buyers for a confidential auction.
Private equity and trade players are expected to want a slice of Pizza Hut which is making $15 million at the earnings line.Pizza Hut’s expected to be pitched as a growth play, ready to expand its footprint after a long stint with turnaround shop Allegro and complete overhaul of its cost base. The company, which has about 225 franchisees, recorded $245 million sales for the 12 months to December 31, up from $190 million one year earlier.However, suitors are expected to be pointed to its growth plans. Pizza Hut CEO Phil Reed was quoted on the weekend saying the company hopes to be turning over $1 billion a year in five years - a fourfold increase from 2021 - with a combination of new stores and distribution channels.
The business is expected to attract interest from Australian and offshore private equity firms - many of which have interest in fast food franchise groups globally - and strategic players such as Australia’s Collins Foods, which was formerly owned by Pacific Equity Partners.co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets.
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