Thu 16th Jan 2025 - Directional Capital confirms acquisition of Pizza Hut Restaurants UK Directional Capital confirms acquisition of Pizza Hut Restaurants UK: Heart With Smart (HWS), which manages the operations of the UK Pizza Hut dine-in restaurant business, has confirmed it has been acquired by private equity firm Directional Capital via a pre-pack deal that sees the transfer and continuing operation of 139 restaurants across the UK. The US-based Directional Capital also owns the company which operates Pizza Hut restaurants across Sweden and Denmark. As well as the transfer of 139 Pizza Hut restaurants, the transaction also safeguards the jobs of over 3,000 employees who have transferred to new vehicle DC London Pie. Will Wright and Chris Pole from Interpath were appointed joint administrators of Heart With Smart Restaurants earlier today (Thursday, 16 January). Immediately thereafter, they sold the business and assets of the Company to DC London Pie, a company owned by Directional Capital. Jens Hofma, chief executive of HWS, 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, said: “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.” Wright, UK chief executive of Interpath, said: “Pizza Hut is one of the world’s most iconic hospitality brands with a loyal customer base, and so we’re pleased to have been able to secure this transaction which will see restaurants continue to operate in towns and cities far and wide across the UK.” Only one site has closed as part of the deal. The extent of a rescue deal for Pizza Hut's UK restaurants had been cast into doubt by the government’s decision to impose steep increases on employers’ national insurance contributions from April. These are expected to add approximately £4m to HWS’s annual cost-base – equivalent to more than half of last year’s earnings before interest, tax, depreciation and amortisation. Until the pre-pack deal, HWS was owned by a combination of Pricoa, a lender, and the company’s management, led by Hofma. Pizza Hut features in the Propel 500 report, an unparalleled resource that profiles the UK’s leading hospitality operators ranked by turnover – which is available now. This comprehensive report provides more than 90,000 words of analysis, delving into company histories, leadership structures, site numbers and financial performance, making it an essential resource for industry professionals. A list of the operators included can be discovered now by visiting the Propel 500 page on Propel’s website. The guide is delivered in two parts: an introductory PDF, featuring deep dives into the top 25 companies and 6,500 words of insight from Propel’s expert writers, and a fully searchable Excel sheet, offering easy access to all the data. Key highlights include Mark Wingett’s exploration of mergers and acquisitions shaping the Top 500’s future, Tim Street’s view of the UK’s franchise market, and Phil Pemberton’s insights into experiential leisure as a hospitality cornerstone. Katherine Doggrell examines developments in UK hotels, while Mark Bentley, business development director at HDI, identifies emerging growth sectors, and Maria Vanifatova, founder of Meaningful Vision, analyses trends in QSRs. Propel 500 is available now for £595 plus VAT. Existing Premium Club members can purchase it for £395 plus VAT. Premium Club members will receive the report for free on Friday, 28 February at 9am. Order the Propel 500 report today by emailing: kai.kirkman@propelinfo.com.