Companies

Jubilant to acquire Dutch firm Fides Food for $35 million

Our Bureau New Delhi | Updated on February 19, 2021

Fides owns 33% of Domino’s master franchisee in Eurasian markets

Food services company Jubilant Foodworks Ltd (JFL) on Friday announced that it will acquire Netherlands-based Fides Food Systems Coöperatief UA, which holds a 32.81 per cent stake in DP Eurasia, the master franchisee of Domino’s Pizza in Turkey, Russia, Azerbaijan and Georgia.

The acquisition — marking JFL’s foray into the Eurasian market — will be done by its wholly-owned subsidiary Jubilant Foodworks Netherlands BV for about £24.8 million (approx $34.7 million).

“Fides is the beneficial owner of 32.81 per cent of equity shares of DP Eurasia NV. DP Eurasia is a public company listed with London Stock Exchange PLC and is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia,” the company said in a BSE filing. DP Eurasia, along with its subsidiaries, offers pizza delivery and takeaway besides eat-in facilities at 771 stores in these markets.

To execute the transaction, JFL and Jubilant Netherlands have entered into an agreement with Turkish Private Equity Fund II LP, which is the sole member of Fides. JFL has executed the purchase agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands.

In a joint statement, Shyam S Bhartia, Chairman, and Hari S Bhartia, Co-Chairman, JFL, said: “We have been partners with Domino’s in India for more than 25 years. With that experience, we hope to add value in DP Eurasia’s business and also create value for our shareholders.”

JFL has exclusive rights to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh and Nepal. It is also the exclusive master franchisee of Dunkin’ Donuts restaurants in India. Currently, the company’s Domino’s Pizza franchise extends across a network of 1,314 restaurants.

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Published on February 19, 2021
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