Domino’s Pizza buys businesses in three Southeast Asian markets
Australian-based pizza company, Domino’s Pizza Enterprises (DPE), has acquired the entire stake in the Domino’s Pizza businesses in Malaysia, Singapore and Cambodia, aiming to further expand its presence in Asia after buying the Taiwan business last year.
The listed Australian company will acquire Mikenwill, which owns the master franchise holder in Malaysia, and Impress Foods Pte Ltd, which owns Domino’s Pizza Singapore and 62 per cent of Domino’s Pizza Cambodia. It will also take over the 35 per cent stake of the minority shareholders in the Cambodia company.
The deal – estimated to be worth A$214 million – is expected to be completed by the end of this year via debt facilities. The final purchase price is subject to an earn-out over the next two to three years.
Once the deal is finalised, 287 stores across the three Asian markets will be added to DPE’s store network. The company eyes increasing the store count in Asia from the current 2400 stores to 3000 by 2033.
“This is a tremendous opportunity for our business,” said Don Meij, Group CEO & MD at Domino’s Pizza Enterprises.
“For those joining our business – we intend to apply our ‘High Volume Mentality’, our technology and our operational expertise to grow our market share in these countries, with the potential to develop entrepreneurs through franchising.”
Domino’s EBIT in Asia in the latest financial year was $31.7 million (or 59.4 per cent) higher than the pre-Covid levels. However, the figure was down by 23.1 per cent on the 2021 year due to “a rapid change in sales in Japan, following the lifting of a State of Emergency in the first half of the year, combined with foreign exchange headwinds”.
Domino’s Pizza Enterprises currently has a network of 3400 stores across 10 markets.
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