Domino's Pizza buys stakes in Iceland, Norway and SwedenStaff writer ▼ | June 9, 2016
Domino's Pizza Group announced a new strategic investment, committing £24m to acquire "significant minority interests" in Domino's Iceland, Norway and Sweden while retaining existing strong local management.
Expanding north Pizza chain is in negotiations in Iceland
Following the transaction, Domino's Pizza Group will hold 49% of the Iceland operations and 45% of each of the Norwegian and Swedish businesses.
Domino's Iceland was established in 1993 and currently operates 19 stores, the board said, generating EBITDA of £3m in 2015, while Domino's Norway was established in 2014 and currently operates 10 stores.
There are currently no stores operating in Sweden, though Domino's said the population of 10 million and no major pizza operator with a significant presence represented a substantial opportunity.
It is currently anticipated that the first Swedish stores will open by year-end, the company's board explained.
The transaction is expected to be earnings-enhancing on an underlying basis for the group in 2017 and subsequent years, and realise significant shareholder value over time, it added.
It will fund the deal from cash and existing debt facilities, and expects to report the cost of investment in the transaction as part of the group's gross assets.
"We are delighted to be investing in these exciting markets, which hold great potential for the group," said Domino's Pizza Group CEO David Wild.
"Our skills in e-commerce, marketing and supply chain will complement the excellent local know-how of our partners in Iceland, Norway and Sweden and help to grow the Domino's brand.
"This is a great deal for everyone concerned and we look forward to welcoming our new colleagues and customers," Wild explained. ■