In a move likened to a strategic chess play, Domino’s Pizza Group PLC has set its sights on fortifying its empire by acquiring its largest Irish franchisee, Shorecal Ltd., in a blockbuster deal valued at €91.9 million ($100 million). This cash, share, and debt transaction mark a pivotal moment in Domino’s expansion playbook.
Domino’s Pizza Group PLC, the U.K. arm of the pizza behemoth, has inked a binding agreement to procure the remaining 85% stake in Shorecal Ltd., an esteemed player in the Domino’s franchise landscape spanning the Republic of Ireland and Northern Ireland. This acquisition solidifies Domino’s control over its Irish dominion, positioning itself for strategic maneuvers in the fiercely competitive pizza battleground.
In this high-stakes transaction, Domino’s commits €72 million for Shorecal, with a strategic allocation of 61% in cash and 39% in shares, further enhancing its grip on the Irish pizza market. Additionally, Domino’s undertakes to settle €19.9 million of Shorecal’s outstanding debt, ensuring a seamless transition of ownership.
Shorecal’s Strategic Hold
With a firm grip on 34 out of the 99 Domino’s establishments in Ireland, Shorecal’s prominence in the Domino’s ecosystem is undeniable. Boasting gross assets of €54.3 million and reporting a pre-tax profit of €8.7 million in 2023, Shorecal emerges as a formidable asset in Domino’s expansion arsenal.
