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NEW YORK -- Tricon Global Restaurants Inc. reached a deal to acquire the A&W and Long John Silver's fast-food chains from privately held Yorkshire Global Restaurants for $320 million in cash.
Tricon, the second-largest restaurant chain behind McDonald's Corp., also said it would change its name to Yum! Brands Inc. to reflect a portfolio that is broadening beyond its mainstay Taco Bell, KFC and Pizza Hut chains.
"Consumers do want more choice," CEO David Novak said. "Consumers love the idea of accepting two brands in the same restaurant."
The decision to acquire A&W and Long John Silver's, Novak said, is part of Tricon's strategy to drive growth by adding stores with more than one of its brands under the same roof, or offering customers two brands and more choices in one restaurant. Currently 7 percent of Tricon's U.S. restaurants are multi-branded.
Long John Silver's is the world's largest quick-service seafood chain, with 1,225 units worldwide and $812 million in sales. A&W, which sells hamburgers, hot dogs and root beer floats, has 970 locations worldwide with $285 million in sales.