Domino’s German joint venture is to acquire 170-strong chain Hallo Pizza for €32m.
The acquisition will be made through Daytona JV Limited, which operates the Domino’s master franchise in Germany, and in which Domino’s owns a one third stake.
Hallo Pizza is the largest independent pizza chain in Germany, generating network sales of €80.2m and normalised EBITDA of €3.5m for FY162.
The acquisition will increase the company’s store count in Germany from 209 to approximately 300-340 following brand conversions, accelerating progress towards its 1,000 store target. Existing Hallo Pizza stores will be operated on a transitional basis until franchisee contracts are converted to Domino’s.
The transaction is scheduled to complete in the first quarter of 2018. Following completion, the German Joint Venture will work with the vendor and Hallo Pizza management to convert franchise contracts to the Domino’s brand over the next 2-3 years.
An additional €20-30m of costs are estimated to be incurred over the next 2-3 years to finance store conversions and other transaction costs.
