Domino’s Pizza Enterprises’
(ASX:DMP) majority owned German JV is set to buy the Hallo Pizza chain of 170 German stores for €35 to 42 million
Domino’s says it will strengthen its market leading position and increase its store count from 209 to about 340.
In FY16 Hallo Pizza etched sales of €80.2 million and €3.5 million in EBITDA.
The acquisition is set to close early next year, subject to a number of conditions and be low digit earnings per share accretive (on a FY17 pro-forma basis).
As part of the transaction, €32 million will be funded on a cash and debt free basis, while the addition €20-30 million will be for integration, re-branding, store conversion and transaction costs.
Shares in Domino’s Pizza Enterprises
(ASX:DMP) closed about 3.3 per cent lower yesterday to $47.70.