Domino’s Pizza Group is hoping to take a bigger slice of the German market by setting up a new joint venture with an Australian partner.
For years the group had been attempting to set up a chain in Germany on its own, but when their plans never settled, Domino’s decided to change their tactic. In conjunction with the Australian company, Domino’s purchased Joey’s Pizza—the largest pizza chain in Germany. Joey’s has 212 stores across the country, with annual sales of $156.5 million.
Germany is currently the world’s fourth-biggest pizza market, and the deal is said to be worth up to $86 million. The deal will increase the number of stores owned by Sydney-listed Domino’s Pizza Enterprises to 1,870.
Don Meij, chief executive of Domino’s Pizza Enterprises, said that entering the German market represented a long-term growth opportunity.
“The acquisition of the market-leading Joey’s Pizza business provides immediate scale and marketing presence, which we can build from,” Meij said.
The company’s Sydney-listed shares jumped more than 12 percent after the deal was announced.