The companies that own Domino's Pizza in the UK and Australia split the bill on the acquisition of German pizza delivery chain
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No matter what your nationality, we all love pizza. And Germans are certainly no exception, which is why the companies that own Domino’s Pizza in the UK and Australia are eager to get a larger slice of the German market. To this end, the businesses are coming together to buy Joey’s Pizza to take their combined holdings in the country to 227.
A joint venture between the UK’s Domino’s Pizza Group and the Australian Domino’s Pizza Enterprises, the $86m acquisition will see Domino’s snap up 212 Joey’s Pizza stores across Germany with combined annual sales of $156.5m. As a result of the deal, the company will become the largest pizza delivery chain in Germany, which is the fourth-largest pizza market in the world. Two-thirds of the venture will be owned by the Australian company, whilst the remainder will be held by the UK-based business.
It stands to expand Domino’s Pizza Group’s reach even further, adding to a network of 800 UK stores and supplementing its existing franchise operations in Ireland, Germany and Switzerland. All in all, the deal marks the end of a good year for the UK-based franchise, which saw its share price rise by 38% in 2015 and its valuation reach £1.6bn. And whilst Domino’s Pizza Group has traditionally struggled to crack the German market, it is hoping this will finally bust the door wide open.
“This is a transformational deal for our German operations, creating the new market-leading pizza delivery operator,” said David Wild, chief executive of Domino’s Pizza Group. “Our strategic stake in the joint venture positions Domino’s Pizza Group to capitalise on the significant future growth potential of this profitable and scaleable business.”
Not the wurst acquisition in the world then.