Domino’s Pizza Group has agreed to sell its Iceland Business, Pizza Pizza, for about £13.7m to a consortium-owned investment vehicle.

The sale is part of Domino’s planned exit from all directly operated international markets to allow it to focus on its core UK and Ireland operations.

The company will initially use the Iceland disposal proceeds to reduce group debt.

The deal should complete before the end of May subject to competition clearance in Iceland.

Domino’s Iceland operates 23 outlets.

Domino’s Iceland’s underlying operating profit for the year ended 27 December 2020 was ISK 101.2m (about £600,000).

The buying consortium includes Eyja fjárfestingafélag III ehf, which previously agreed to buy Domino’s Swedish business, PPS Foods.

Domino’s UK & Ireland is targeting medium-term sales of £1.6bn-£1.9bn, and 200 new stores.

The company said it has made an “attractive offer” to franchisees on the benefits of the plan, but had yet to reach agreement.