Domino’s Pizza has announced that it has reached an agreement to offload its Swedish arm in order to allow the group to focus on its core UK and Ireland operations.
Its entire shareholding in PPS Foods AB, or Domino’s Sweden, has been sold to Eyja fjárfestingafélag III EHF, a wholly owned subsidiary of Eyja fjárfestingafélag EHF, a company controlled by Birgir Bieltvedt.
Bieltvedt is an indirect owner of DP Norway AS, and will pay €2m (£1.8m) in cash to Dominos as part of the transaction, which is expected to complete on 2 May 2021.
The move forms part of the group’s planned exit from all directly operated international markets, which was first announced in October 2019. Domino’s previously offloaded its Domino’s Norway business in 2020.
Domino’s Sweden is the master franchisee of Domino’s Pizza in Sweden, according to the group, and DPS currently operates 14 stores in Sweden.
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 will be retained within DPG.