8th Jun 2016 06:46
LONDON (Alliance News) - Pizza delivery operator Domino's Pizza Group PLC on Wednesday said it has invested GBP24.0 million to acquire significant minority interests in the Domino's Iceland, Norway and Sweden units.
Domino's said the acquisition of the stake marks an agreed future route to majority ownership and control of the master franchisees for the Domino's businesses in the Scandinavian countries.
It is acquiring the stakes from Birgir Bieltvedt, the chairman and founder of Domino's Iceland, and certain other investors.
Following the investment, Domino's Pizza Group will own 49% of the Iceland business and an effective 45% in the Norwegian and Swedish businesses. It has the option to by the remainder of shares between 2020 and 2023.
"We are delighted to be investing in these exciting markets, which hold great potential for the group. 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," said David Wild, the chief executive of Domino's Pizza.
Domino's said the transaction, funded from existing cash resources and debt facilities, will be earnings enhancing on an underlying basis in 2017.
By Sam Unsted; [email protected]; @SamUAtAlliance
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