(Reuters) - Britain’s Domino’s Pizza Group PLC DOM.L (DPG) said on Tuesday it is forming a joint venture with Domino’s Pizza Enterprises DMP.AX (DPE) to buy Joey’s Pizza for 45 million euros ($49.13 million), creating Germany’s largest pizza delivery group.
Domino’s has struggled to grow in Germany, the world’s fourth-largest pizza market.
The latest deal would bring the total number of stores under Domino’s to about 227, as it tries to “overcome the challenges it has faced as a small operator in the country”, the company said.
Upon meeting certain performance goals, the deal value could be elevated to 79 million euros, DPG said.
Domino’s will acquire Joey’s through a new joint venture between DPE and DPG, where the new company would have 2/3rd representation from Australia-listed Domino’s Pizza Enterprise. Fifteen of the 20 stores will be absorbed by the new joint venture, while the remaining will be closed, the company said.
Reporting by Ankush Sharma in Bengaluru