Jubilant Foodworks on February 19 announced that it is all set to fully acquire Netherlands-based Fides Food Systems Coöperatief U.A. via its wholly-owned subsidiary—Jubilant Foodworks Netherlands B.V. For this, the company will make an investment of approximately GBP 24.80 million.
Following the acquisition of Fides by Jubilant Foodworks Netherlands B.V., Jubilant Foodworks Limited will indirectly hold 32.81 percent shares in DP Eurasia, it said an a regulatory filing.
Jubilant FoodWorks awaiting relaxations in dine-in curbs to ramp up growth
"We wish to inform that Jubilant Foodworks Netherlands B.V., wholly-owned subsidiary of the Company, has entered into a purchase agreement with Turkish Private Equity Fund II L.P. to fully acquire Fides Food Systems Coöperatief U.A. which holds 32.81% equity shares in DP Eurasia N.V. (“DP Eurasia”) (“Purchase Agreement”). Jubilant FoodWorks Limited (“Company”) has also executed the Purchase Agreement as guarantor in connection with the investment obligations of Jubilant FoodWorks Netherlands B.V.," the JV press release said.
DP Eurasia is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia. Jubilant Foodworks Ltd operates the Domino’s Pizza franchise in India apart from Dunkin’ Donuts stores.
DP Eurasia (together with its subsidiaries) offers pizza delivery and takeaway/eat-in facilities at 771 stores (568 in Turkey, 190 in Russia, 9 in Azerbaijan and 4 in Georgia as on 31 December 2020).
As of December 31, 2020, Jubilant FoodWorks Ltd operated 1,314 Domino's Pizza restaurants, 27 Dunkin' Donuts restaurants.
It also owns and operates Chinese cuisine restaurant brand, "Hong's Kitchen", which serves 2 cities with 7 restaurants in India and 3 Ekdum! Biryani outlets. In December 2020, the company also acquired a 10.76 per cent equity stake in Barbeque-Nation Hospitality Ltd for Rs 92 crore. Earlier this month, Jubilant FoodWorks said it is awaiting relaxations in dine-in restrictions imposed by the government for the restaurant industry similar to that for multiplexes to ramp up growth.
“We are happy to announce our acquisition of Fides for 32.81% equity stake in DP Eurasia, one of the largest master franchisee of the Domino’s Pizza brand. We have been partners with Domino’s in India for more thantwenty-five years, with that experience we hope to add value in DP Eurasia’s business and also create value for our shareholders,” Jubilant Foodworks Limited Chairman Shyam S Bhartia and Co-Chairman Hari S. Bhartia said.