Domino’s is to dispose of its Swedish business in order to focus on its operations in the UK and Ireland, following the exit from Domino’s Norway last year.

The group has reached an agreement to sell its entire shareholding in PPS Foods AB (Domino’s Sweden), to Eyja fjárfestingafélag III – a wholly owned subsidiary of Eyja fjárfestingafélag EHF, a company controlled by Birgir Bieltvedt. Bieltvedt is an indirect owner of DP Norway AS.

Domino’s Pizza Group will pay €2m euros (£1.8m) in cash to the purchaser as part of the transaction, which is expect to complete on 2 May 2021.

The disposal of the Swedish business forms part of the group’s planned exit from all directly operated international markets – as announced by the company in October 2019 – and will allow management to focus on its core operations in the UK and Ireland.

Domino’s Sweden is the master franchisee of Domino’s Pizza in Sweden, which operates 14 stores. Its underlying operating loss for the year ended 31 December 2019 was £4m and the value of its gross assets were £9.8m as at 30 June 2020.

Following completion, funding previously allocated to Domino’s Sweden will be retained within DPG.