UK-based Domino's Pizza Group has reached an agreement to invest £24 million to acquire significant minority interests in the master franchisees for Domino's Pizza in Iceland, Norway and Sweden.

The deal has been made with Birgir Bieltvedt, chairman and founder of Domino's Iceland, and other investors. Following the investment, the group will hold 49% in the Iceland business and an effective interest of 45% in both the Norwegian and Swedish businesses.

Bieltvedt and the current management team will remain with the business and retain a significant stake in each country, but the collaboration is expected to help the Nordic Domino's operations to scale up in the years ahead. Iceland, Norway, and Sweden have an aggregate population of 15 million and the acquiring group cites the region's fragmented competition, stable economies, low unemployment and high digital adoption as an attractive proposition to aid commercial growth.

The group sees an opportunity to combine the local franchisees' operating strength with its own franchising, marketing, eCommerce and supply chain resources - as well as its larger financial resources.

What are the Nordic Domino's businesses?

Domino's Iceland 

  • Established in 1993
  • Operates 19 stores, generating EBITDA of £3 million in 2015.
  • 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

  • Established in 2014
  • Operates ten stores, with the opportunity for significant further roll out
  • 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 ten 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.  

CEO of Domino's Pizza Group, David Wild, who talked up his company's innovative approach to retailing at this year's RBTE event in London, said: "We are delighted to be investing in these exciting markets, which hold great potential for the group.

"Our skills in eCommerce, 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."