Pizza group Domino’s has acquired the remaining 85 per cent shareholding in franchise business Shorecal Limited, which operates more than a third of its stores on the island of Ireland, in a deal worth up to €72 million as it targets further growth here.
The group will acquire the shareholding in the business from current owners Charles Caldwell, Adrian and Anne Caldwell, and investment vehicle SC Holdings I Ltd. More than 60 per cent of the purchase price will be paid in cash, with the remaining 39 per cent in shares. The deal is expected to close by the end of May.
As part of the deal, which must be approved by regulators, DPG will repay almost €20 million in outstanding debt.
Shorecal operates 34 of the 99 Domino’s stores across the Republic of Ireland and Northern Ireland. The move is part of a growth plan the company outlined in December. It will allow DPG to accelerate growth and materially increase the store count in Ireland. Shorecal’s existing management team will remain to help oversee growth.
“We see a significant opportunity to meaningfully increase our Irish store count and deliver long-term, sustainable returns,” chief executive Andrew Rennie said.
Separately, the group reported a marginal rise in its 2023 profit, and also forecast profit for the current year to be in line with expectations, supported by the easing of raw material costs.
The company, a franchisee of US-based Domino’s Pizza, posted a 3.6 per cent rise in its underlying core profit for the year ended December 31st at £138.1 million (€161.6 million).
“We are rigorously focused on accelerating organic growth and pursuing value enhancing inorganic growth opportunities, to build a larger and more cash-generative business, at pace but with discipline,” Mr Rennie said.
– Additional reporting: Reuters
