Domino’s signs MOU to acquire Pizza Company in Belgium

Pizza franchise company, Dominos Pizza Enterprises Limited (DMP), has announced that it has entered into a Memorandum of Understanding to purchase Pizza Company. Pizza Company is a pizza chain that operates 15 stores throughout Belgium.

Don Meij, CEO of Dominos pizza franchise company, explained that the purchase would make Dominos the number one pizza delivery company in Belgium in terms of store count, and would increase the pizza franchise’s store count to 31, with one store to be closed due to a conflict with the territory of an existing store.

“While our strategy is for organic growth, we will always consider quality businesses if they are presented to us. We believe purchasing Pizza Company will be a significant step forward for us to become a truly national brand in Belgium and grow our European operations,” Mr Meij said.

“The 15 Pizza Company stores would be rebranded to Dominos Pizza from March 2010 with the existing operator continuing as a Dominos franchisee.

“Once converted, Dominos 30 stores across Belgium will give us the momentum to make a substantial presence in the market, similar to what we have achieved in New Zealand.

Mr Meij continued to explain that this purchase will have no material impact on DMP’s earnings for FY10.

The intended purchase of Pizza Company moves Dominos pizza franchise group’s guidance of opening between 40-50 stores for FY10 to more than 50.

A full year guidance update will be provided at the pizza franchise company’s half year results on Wednesday, 17 February 2010.

Dominos pizza franchise company now operates 800 fast food franchises in Australia, New Zealand, France, Belgium and The Netherlands.