Acquisition of interest in Domino’s Iceland, Norway and Sweden

Domino’s Pizza Group plc

Acquisition of interest in Domino’s Iceland, Norway and Sweden

Key Highlights

·         Strategic investment of £24 million to acquire significant minority interests in Domino’s Iceland, Norway and Sweden and retain existing strong local management

·         Agreed route to future majority ownership and control

·         Domino’s Pizza Group brings skills and experience in franchising, marketing, e-commerce and supply chain

·         Exciting opportunity in attractive growth markets to grow the Domino’s brand

Domino's Pizza Group plc ("Domino's" or "the Group"), the UK’s number one pizza company, today announces the investment of £24 million to acquire significant minority interests in the master franchisees for Domino's Pizza in Iceland, Norway and Sweden from Birgir Bieltvedt, the Chairman and founder of Domino’s Iceland, and certain other investors. Following the investment, Domino’s will hold 49 per cent in Iceland and an effective interest of 45 per cent in both the Norwegian and Swedish businesses. Birgir Bieltvedt and the current management team will remain with the business and retain a significant stake in each country.


Iceland, Norway, and Sweden have an aggregate population of 15 million with fragmented competition, stable economies, low unemployment and high digital adoption. These markets offer attractive growth prospects for the Domino’s brand. The existing strong management teams will remain in place allowing us to combine their operating strength with our skills in franchising, marketing, e-commerce and supply chain. The combination of proven local management in addition to our expertise and financial strength means we are well positioned to take full advantage of the growth opportunity.   


Domino’s Iceland was established in 1993 and currently operates 19 stores, generating EBITDA of £3 million in 2015. Iceland has a population of over 300,000 people and is one of the most successful Domino’s operations on a per capita basis of the 81 countries in which the brand operates. Trading in Iceland is strong with sales ahead by nearly 20% over the past year. There is the potential to increase stores by a modest number and continue to drive like-for-like sales.  


Domino’s Norway was established in 2014 and currently operates 10 stores, with the opportunity for significant further roll out. Norway has a population of over five million people, of which around four million live in urban areas. The Norwegian pizza market represents an attractive growth opportunity with considerable scope for further expansion of the network. Domino’s Norway is expected to be profitable in the second half of 2017.


Sweden represents a market offering substantial potential for the brand with a population of almost 10 million and no major pizza operator with a significant presence. There are currently no Domino’s stores in Sweden but it is anticipated that the first units will open before the year end.  

The transaction is expected to be earnings enhancing on an underlying basis for the Group in 2017 and subsequent years and realise significant shareholder value over time. We will fund our investment from cash and existing debt facilities. We expect to report the cost of investment in the transaction as part of the Group’s gross assets.

We have the right to appoint a director to the boards of Dominos in Iceland, Norway and Sweden, and have entered into put and call option arrangements, linked to business performance and subject to independent valuation, to acquire the remaining shares exercisable over the outstanding shareholdings between 2020 and 2023.

Commenting on the transaction, David Wild, CEO of Domino's Pizza Group, said:

“We are delighted to be investing in these exciting markets, which hold great potential for the Group. Our skills in e-commerce, marketing and supply chain will complement the excellent local know-how of our partners in Iceland, Norway and Sweden and help to grow the Domino’s brand. This is a great deal for everyone concerned and we look forward to welcoming our new colleagues and customers.”

Birgir Bieltvedt, Chairman and founder of Domino’s Iceland, said:

“The combination of two partners in these markets, with our own unique skills and knowledge, combined with the financial strength which Domino’s Pizza Group brings, will create a strong business in countries with significant potential for future growth. We have a talented and motivated team and are excited to start working alongside our UK partners in further developing the Domino’s brand.”

Domino’s Pizza Group current trading remains in line with market expectations. The interim results will be announced on 28 July.


For further information, please contact:

Domino's Pizza Group plc

David Wild, Chief Executive Officer

020 7379 5151


James Devas, Robbie Hynes

020 7379 5151


Chris Wilkinson, Richard Thomas

020 7260 1000


Notes to Editors:

Domino's Pizza Group plc is the leading player in the fast-growing pizza market holding the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the UK, Republic of Ireland, Switzerland, Liechtenstein and Luxembourg. Additionally it owns a strategic stake in the largest pizza delivery business in Germany. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991.