UK-listed pizza company Domino’s Pizza Group PLC (LON:DOM) has acquired “significant minority interests” in its Iceland, Norway and Sweden businesses, as it looks to expand its operations into Scandinavia.
After investing £24mln into the businesses, the UK arm of Domino’s will hold a 49% stake in the Icelandic franchises, and a 45% stake in both the Norwegian and Swedish franchises.
The quick-service pizza firm has the option to buy the remaining shares between 2020 and 2023.
“We are delighted to be investing in these exciting markets, which hold great potential for the group,” said chief executive David Wild.
“Our skills in e-commerce, marketing and supply chain will complement the excellent local know-how of our partners in Iceland, Norway and Sweden and help to grow the Domino's brand.”
Domino's Iceland was established in 1993 and currently operates 19 stores, generating underlying profits [EBITDA] of £3mln last year.
Domino’s Norway was established in 2014 and currently operates 10 stores, while in Sweden the first stores are expected to open later this year.
Domino’s will fund the acquisition through cash and debt facilities.
The group added that trading remains in line with market expectations.
Shares were up 1p, or 0.1%, to 1068p.
Shares in DP Poland PLC (LON:DPP) - which owns the franchise rights to Domino's Pizza in Poland - were also up by 9% on the back of the announcement.
-- Update: DP Poland share information --