Domino’s is getting a slice of the German pizza business.
The London-listed pizza company has formed a joint venture to buy Joey’s Pizza, Germany’s largest pizza delivery firm, in a deal worth €79m (£57.6m).
To buy the German company, Domino’s Pizza Group formed a joint venture with Domino’s Pizza Enterprises. Domino’s Pizza Group will own one-third of the venture, with Domino’s Pizza Enterprises owning the majority.
David Wild, chief executive of Domino’s Pizza Group, called it a “transformational” deal:
Creating the new market leading pizza delivery operator. Our strategic stake in the joint venture positions Domino’s Pizza Group to capitalise on the significant future growth potential of this profitable and scalable business. We look forward to partnering with Domino’s Pizza Enterprises.
The acquisition will bring together Domino’s existing German operations with Joey’s Pizza, which has 212 stores across Germany, creating a pizza operator with some 227 German stores.
Of Domino’s 20 existing German stores, 15 will be moved to the new venture and the remainder will be closed.
Domino’s announced it expected the deal to enhance underlying earnings for the pizza group in 2016 and “realise significant value over time”.
Domino’s Pizza Group and Domino’s Pizza Enterprises are both owned by Domino’s Pizza Inc, a US-listed company.