The struggling Pizza Hut restaurant chain will be sold for $US2.7 billion ($A3.8 billion) by parent company Yum Brands.
Yum Brands said the pizza chain has struggled with outdated stores and growing competition.
Private equity firm LongRange Capital will buy Pizza Hut, excluding the mainland China business, for about $US1.5 billion.
The mainland China Pizza Hut will be purchased by Yum China Holdings for approximately $US1.2 billion, LongRange Capital said.
"Under LongRange and Yum China, Pizza Hut will be well positioned for future growth with ownership that brings deep expertise in the restaurant industry," Yum Brands CEO Chris Turner said in a statement.
Pizza Hut was founded in 1958 in Wichita, Kansas. PepsiCo acquired the chain in 1977 but spun off its restaurant division - which became Yum Brands - in 1997.
Yum Brands, whose other brands include KFC and Taco Bell, began a strategic review to explore options for Pizza Hut in November, with the chain reporting declining sales at comparable stores.
Louisville, Kentucky-based Yum Brands expects both transactions to close in the third quarter.
