Domino’s Pizza Group (DPG) has committed to an investment of £11m in DP Poland (DPP) to support growth opportunities.
DPP operates 111 Domino’s Pizza stores in Poland and a further five in Croatia.
The investment is part of a larger fundraising initiative by DPP aimed at securing £20.5m.
The funds will be allocated at 9.92 pence per share, a 23.1% discount on DPP’s closing price as of 26 March 2024.
Upon the successful completion of the investment and assuming the total fundraising goal has been met, DPG will hold an estimated 12.1% stake in the franchise company.
The capital raised will be directed towards accelerating DPP’s growth, focusing on organic sales, store rollouts and exploring potential acquisition opportunities.
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By GlobalDataThe board of DPP has also projected that the Polish market could support up to 500 Domino’s stores by 2030.
DPG CEO Andrew Rennie said: “I’m delighted to be partnering with DPP as we continue to execute against our new growth plan. DPP is a fantastic business with a significant growth opportunity ahead of it. Whilst the Domino’s brand is strong in Poland and Croatia, both markets are significantly underpenetrated with a unique store opening and profitability opportunity.”
“We have strong guardrails in place as we re-enter international markets, and our investment in DPP is structured in a capital-light manner, with an initial investment of £11m.”
In conjunction with the investment, DPG has also secured an option agreement with Malaccan Holdings Limited, planning to acquire additional shares in DPP later on.
This could increase DPG’s shareholding in the company to a maximum of 29.99%.
DPG recently agreed to acquire an 85% stake in Shorecal, the Domino’s franchise in the Republic of Ireland and Northern Ireland, for €72m. This acquisition, combined with DPG’s existing 15% stake, will result in full ownership of the franchise operations in Ireland.