And the Brisbane-based company has plans to build its network in Asia to as many as 1900 stores within a decade with more than 400 in Taiwan.
Domino’s Taiwan is the second biggest pizza chain in the market with 138 stores and the company expects there would be significant room for growth.
“With a population of more than 23.5 million, the addition of Domino’s Taiwan to DPE’s portfolio will expand the Asian market by more than 18 per cent to 150 million people,” the company said.
Domino’s already has a growing base in Japan as well as across Europe and its share price has been climbing since this time last year when it was $62 a share. It’s now $114 and its total market value briefly broke through the $10 billion mark this week.
Managing director Don Meij said there was significant potential to open more stores, closer to customers.
“This is a market with tremendous opportunity for our business and this acquisition provides a similar opportunity for the local team,” Meij said.
“Our expansion focus has been on identifying opportunities with large total addressable markets and a stable economy. We look forward to bringing our high-volume mentality to this business.”
The $79 million purchase price will be financed by cash and debt facilities. It is expected to be 2 per cent of earnings per share accretive.
There will be no impact on the 2021 financial result but will have a marginal positive contribution to 2022 profit.
The Taiwan business had sales of $73 million in 2020.
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