DOMINO'S CONTINUES GLOBAL EXPANSION WITH JAPAN BUY OUT
24 October 2017, Written by David Simmons
DOMINO'S Pizza (ASX: DMP) is taking full ownership of its Japanese joint venture by spending $42 million to buy out partner Bain Capital's stake.
The $42 million buyout is less than the $46.4 million the company set aside for the deal in its full-year accounts.
The purchase of Bain Capital's stake in the Domino's Pizza Japanese joint venture will be funded by a combination of cash and existing debt facilities, and will be completed by Friday.
This deal is the latest high-profile acquisition for the Australian pizza chain who just last week announced its German expansion with the acquisition of Hallo Pizza for $48.1 million.
In total, Domino's is set to spend between $52.6 million and $63.1 million to integrate the 170 stores into Domino's Pizza Deutschland.
The Hallo Pizza deal will be completed in early 2018 and will not impact Domino's FY18 underlying earnings to large extent.
Following this morning's announcement, Domino's shares are trading down slighlty to $49.50.
Business News Australia
Author: David Simmons