The Domino’s Pizza franchise has consolidated its position as New Zealand’s second largest pizza chain by merging with Christchurch-based Mad Dog Pizza.
Currently owned by Grant Williams and Barry Cox and founded in 2000, Mad Dog Pizza operates six stores across Christchurch that will be converted to Domino’s stores. However, the stores will continue to be owned and operated by Williams and Cox.
The move follows fast food franchise purchase in March of Pizza Haven New Zealand.
“Through our expansion program and mergers such as these, we will continue to grow our presence in New Zealand and meet the demands of consumers,” says Domino’s Pizza CEO, Don Meij.
According to Williams, Mad Dog Pizza decided to merge with Domino’s to ensure the long-term future of the business and create future opportunities for growth.
“There is ongoing consolidation in the New Zealand industry and we saw this as an opportunity to position our business for the future. By joining Domino’s we are able to access its proven business model, buying power, marketing force, training and support systems,” he says.
In another development, Dominos’ has announced that the offer for shares in the company through the initial public offering (IPO) has been completed and shares have been issued and transferred to successful applicants. The offer price was fixed at $2.20 per share and the offer was fully underwritten by Goldman Sachs JBWere. The market capitalisation of Domino’s Pizza at the offer price is $132 million.
The pizza franchise holds the exclusive master franchise agreement for the Domino’s brand and network in Australia and New Zealand.
The Domino’s brand is owned by Domino’s Pizza Inc, a listed US company.
23-May-2006