Yum! Brands said Tuesday that it is selling Pizza Hut in a $2.7 billion deal that will split ownership of the restaurant chain between a U.S. private equity firm and a Chinese restaurant company.

Pizza Hut, excluding the mainland China business, will be sold to LongRange Capital for $1.5 billion, while Pizza Hut China will be sold by Yum! China for $1.2 billion, the company said in a news release.

"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.

Yum! Brands, whose other brands include KFC and Taco Bell, started exploring options for Pizza Hut in November following declining comparable-store sales.

Pizza Hut was founded in 1958 in Wichita, Kansas. PepsiCo acquired the chain in 1977 but spun off its restaurant division in 1997, which became Yum! Brands.

—This is a developing story and will be updated