In what can be considered as one of the largest European restaurant deals in the past five years, Chinese private-equity firm Hony Capital Ltd has paid US$1.54 billion to acquire restaurant chain PizzaExpress.

PizzaExpress has more than 400 outlets in the United Kingdom and owns 22 stores in China, with branches in Beijing, Shanghai and Hong Kong. It also has more than 60 stores around the world.

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Hony Capital CEO John Zhao said the purchase of PizzaExpress, which he described as a well-established and exciting brand, will help the company drive its business forward in the United Kingdom.

"We also have the local expertise to grow the branch in the Chinese market," Zhao said.

Hony bought the restaurant chain from Gondola Group, a restaurant chain operator in Ireland and United Kingdom.

Gondola also owns Italian food firm ASK Italian, pizza store Milano, Italian food store Zizzi, and a number of other food-related shops.

PizzaExpress CEO Richard Hodgon said the acquisition of the pizza chain is a positive development for the business as he stressed that the Asia Pacific region is a key part of PizzaExpress's future growth strategy.

The pizza store has more than 2,500 employees. The statement from both Hony and Gondola, however, did not mention if the employees will be absorbed by the company.

The purchase, said Gondola Group CEO Harvey Smyth, only showed the strong and growing international presence of PizzaExpress.

He said Gondola received considerable interest in buying the business but the company decided to give it to Hondy because of the brand's growing presence in the region.

"Hony's expertise in China and in the region will be invaluable for the brand," Smyth said.

TagsPizzaExpress, Hony Capital, PizzaExpress Bought