Domino’s Pizza Group’s UK operation, together with its Nordic partners – Pizza Pizza Norway – has splashed the cash to acquire Dolly Dimple’s, a leading Norwegian pizza operator.
Dolly Dimple’s is the third largest pizza company in Norway, with 42 stores across the country and a well-established and strong heritage of customer service.
It is being acquired from Norges Gruppen for an enterprise value of £4m.
Back in June last year Domino’s UK business paid £24m to acquire significant minority interests in Domino’s Iceland, Norway and Sweden and retain existing strong local management.
Domino’s plans to integrate the Dolly Dimple’s business into the start-up Domino’s operation within Norway, which currently has 12 operating stores. The groups have limited geographical overlap and the combined operation will have around 50 stores by the end of the year, providing nationwide coverage.
In a series of transactions, which are dependent upon approval from the Central Bank of Iceland, the group shareholdings will be restructured and DPG will assume a controlling share in the Norway, Sweden and Iceland Domino’s businesses ahead of schedule.
DPG will acquire the Iceland group 51% shareholding in Pizza Pizza Norway and increase its stake in the Icelandic business from 49% to 51%.
David Wild, CEO of Domino’s Pizza Group, said: “The Norwegian market has plenty of opportunity for growth and with Dolly Dimple’s stores and dedicated colleagues, alongside our expertise in digital and e-commerce, this acquisition will drive Domino’s growth across Norway. I am also pleased that we have been able to restructure our shareholdings ahead of schedule and now have a controlling share in the Norway, Sweden and Iceland businesses.”
The acquisition came the same day as Domino’s revealed UK sales increased 7% to £1 billion for 2016. Profits rose 10% to £65m.