Domino's is continuing its European expansion with the 32 million euro ($A48.1 million) acquisition of German chain Hallo Pizza.
The cost of integrating the 170 stores into Domino's Pizza Deutschland, which is majority owned by Domino's Pizza, will bring the ASX-listed company's net spend on the deal to between $A52.6 million and A63.1 million.
Domino's store count in Germany will grow from 209 to between approximately 300 and 340, but Domino's Pizza chief executive Don Meij said further expansion is on the cards.
"The acquisition of Hallo Pizza strengthens our leading market position and assists DPE to accelerate towards achieving its target of operating 1,000 stores in Germany," Mr Meij said.
"We are excited to share our innovations with Hallo Pizza franchisees to drive the customer experience and higher sales under the Domino's system."
Domino's will fund its share of the deal with a mix of cash and debt, and said it could end up spending more to make the German business more efficient.
The timing of completion early in the 2018 calendar year means the transaction will only have a small positive contribution to Domino's FY18 underlying earnings.
Share
