Domino's Pizza Enterprises to buy chain’s Taiwan operator
The acquisition is expected to close in the first half of FY 2022.
Domino’s Pizza Enterprises is slated to enter its tenth market, announcing it will acquire the operator of Domino's Taiwan for A$79 million (US$61.2 million) in cash and debt facilities.
The ASX-listed company said it entered into a binding agreement with Formosa International Hotels Corporation to get a 100% interest in PizzaVest Company Limited.
Domino’s Taiwan currently operates 157 corporate and franchised stores and is the second largest pizza chain in the market.
Domino's Pizza Enterprises said it sees long-term potential from more than 400 stores in Taiwan, now anticipating operating 1,900 stores in Asia by between 2030 and 2032, compared with its previous forecast of 1,500.
The acquisition is expected to close in the first half of FY 2022, subject to local regulatory approvals.
Over time, Domino's Pizza Enterprises also expects to benefit from regional procurement, supply chain and operational synergies through leveraging its existing capabilities in Japan and globally over a larger store network.
The addition of Domino’s Taiwan to the company’s portfolio will expand the Asian market by more than 18%, to almost 150 million people, the pizza firm said.
“This is a market with tremendous opportunity for our business and this acquisition provides [a] similar opportunity for the local team,” Domino’s Pizza Enterprises group CEO and managing Director Don Meij said in a statement.
“We have built centres of excellence in Australia/New Zealand, Europe and Asia, allowing us to complement local expertise in menu development and taste preferences with proven experience in technology, marketing, operations, and strategy and insights.”
Domino's Pizza Enterprises also said it remains “active in pursuing suitable additional markets” as acquisition opportunities.
Photo credit: Domino’s Taiwan Facebook
