By MICHELLE CHAPMAN, AP Business Writer

The struggling Pizza Hut restaurant chain will be sold for $2.7 billion by parent company Yum Brands.

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Private equity firm LongRange Capital is buying Pizza Hut, excluding the mainland China business, for about $1.5 billion, the company said Tuesday. The mainland China Pizza Hut will be purchased by Yum China Holdings Inc. for approximately $1.2 billion, it said.

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Yum! Brands began a strategic review to explore options for Pizza Hut in November, with the chain reporting declining sales at comparable stores.

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Yum! Brands expects both transactions to close in the third quarter.

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