Domino's buys into Japanese market
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Australian-listed pizza company Domino's will spend more than $235 million to take over its Japanese-based sister company.
Domino's Pizza Enterprises (DPE) has agreed to buy a 75 per cent stake in Domino's Pizza Japan from Bain Capital Domino Hong Kong for 12 billion yen ($A135.65 million).
The company will also provide nine billion yen ($A101.74 million) of new debt funding.
The move came as Domino's announced a net profit of $28.657 million for the 2012/13 financial year, an increase of more than six per cent.
Underlying profit was $30.4 million, an increase of more than 13 per cent on the previous year.
Domino's chief executive Don Meij said the move into Japan would expand the company's network and provide it with further growth opportunities.
"The acquisition represents an exciting opportunity to leverage our proven track record of successfully growing the Domino's network to deliver shareholder value," he said.
"Japan is a strategic location for DPE's future expansion, providing access to a large market which is well suited to significant new store roll-outs and the relocation of stores to higher traffic locations with improved image and formats."
Domino's shares have been placed in a trading halt until Friday following the takeover announcement.
The shares last sold at $11.82.
Mr Meij said the roll out of new products contributed to its 2012/13 result.
"Our solid performance for the 2013 full year is the result of product innovation, rolling out new products including the biggest product launch in 20 years with the addition of our new Chefs Best range," he said.
He said the company expects to lift earnings by 15 per cent in the 2013/14 financial year and open between 70 and 80 new stores globally during that time.