Domino’s Pizza Group (DPG) has sold the entire shareholding for its Swiss business for CHF 0.3m (£0.2m) in a bid to further streamline the business.
The disposal of Domino’s Switzerland is expected to be on a debt-free, cash-free basis, with a normalised level of working capital.
The transaction, which should be finished by the end of August 2021, is the final part of DPG’s planned exit from all directly operated international markets and will allow the group to focus on its core UK and Ireland operations, a plan that was first announced by the company in October 2019.
It is not the first time Domino’s has offloaded an international business in 2021. Earlier this year, it announced that it had reached an agreement to offload its Swedish arm as part of this refocusing plan. This transaction was completed in May.
The move saw its entire shareholding in PPS Foods AB, or Domino’s Sweden, sold to Eyja fjárfestingafélag III EHF, a wholly owned subsidiary of Eyja fjárfestingafélag EHF, a company controlled by Birgir Bieltvedt.
Domino’s Sweden’s underlying operating loss for the year ended 31 December 2019 was £4.0m, and the value of its gross assets was £9.8m as at 30 June 2020. Following completion, funding previously allocated to Domino’s Sweden was retained within DPG.