Domino's German joint venture to acquire Hallo Pizza
The acquisition will increase the store count in Germany from 209 to approximately 300-340.
Domino's Pizza Group plc has announced that the German Joint Venture, Daytona JV Limited, which operates the Domino's master franchise in Germany is set to acquire Hallo Pizza GmbH for a consideration of €32 million on a cash and debt free basis.
Hallo Pizza is the largest independent pizza chain in Germany with a comprehensive national footprint of 170 franchise stores throughout Germany. Hallo Pizza generated network sales of €80.2 million and normalised EBITDA of €3.5 million for FY16.
The acquisition will strengthen the German Joint Venture's market leading position and increase the 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 also expected to improve the profitability of former Hallo Pizza stores and existing Domino's stores for both franchisor and franchisees as stores are converted to Domino's and national advertising campaigns, social media initiatives and IT innovations are leveraged over the larger store network.
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.
