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Domino's buys Joey's Pizza, becomes largest pizza delivery co in Germany

Published 16/12/2015, 07:49 am
© Reuters.  Domino's buys Joey's Pizza, becomes largest pizza delivery co in Germany
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Dec 15 (Reuters) - Britain's Domino's Pizza Group PLC DOM.L (DPG) said on Tuesday it is forming a joint venture with Domino's Pizza Enterprises DMP.AX (DPE) to buy Joey's Pizza for 45 million euros ($49.13 million), creating Germany's largest pizza delivery group.

Domino's has struggled to grow in Germany, the world's fourth-largest pizza market.

The latest deal would bring the total number of stores under Domino's to about 227, as it tries to "overcome the challenges it has faced as a small operator in the country", the company said. urn:newsml:reuters.com:*:nRSO1809Ja

Upon meeting certain performance goals, the deal value could be elevated to 79 million euros, DPG said.

Domino's will acquire Joey's through a new joint venture between DPE and DPG, where the new company would have 2/3rd representation from Australia-listed Domino's Pizza Enterprise. Fifteen of the 20 stores will be absorbed by the new joint venture, while the remaining will be closed, the company said.

($1 = 0.9159 euros)

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