Domino’s Pizza Group plc (LON:DOM) has today announced that it has signed a binding Sale and Purchase Agreement with PPH ehf. under which DPG will sell the entire issued share capital of Pizza Pizza ehf. “Domino’s Iceland” for a total consideration of ISK 2.4bn (approximately £13.7m) on a cash-free, debt-free basis, which will be satisfied in cash.
The Purchaser is an investment vehicle owned by a consortium comprising Eyja fjárfestingafélag III ehf. (a wholly-owned subsidiary of Eyja fjárfestingafélag ehf., a vehicle controlled by Birgir Bieltvedt), Kristinn ehf., Sjávarsýn ehf. and Lýsi hf. Mr Bieltvedt is an indirect owner of DP Norway AS and, as previously announced, DPG has separately agreed the sale of its Swedish business (PPS Foods AB) to Mr. Bieltvedt’s vehicle, Eyja fjárfestingafélag III ehf.
The proceeds from the disposal will initially be used to reduce Group debt.
The transaction is subject to competition approval in Iceland and is expected to complete before the end of May 2021 assuming Icelandic competition clearance is obtained by 10 May 2021.
The disposal of Domino’s Iceland is part of the planned exit from all directly operated international markets to allow management to focus on its core UK and Ireland operations, as announced by the Company in October 2019 and follows the exit in 2020 from Domino’s Norway and the announcement on 8 March 2021 of the exit from Domino’s Sweden. Discussions remain ongoing regarding a disposal of the Company’s Swiss operations.
Domino’s Iceland is the master franchisee of Domino’s Pizza in Iceland. At the date of this announcement, Domino’s Iceland operates 23 stores in Iceland. Domino’s Iceland’s underlying operating profit for the year ended 27 December 2020 was ISK 101.2m (approximately £0.6m) and the value of its gross assets was ISK 3.822bn (approximately £22.1m) as at 27 December 2020.