Why is Jubilant Foodworks making a foray into the Netherlands?
Answer
Answer
Jubilant FoodWorks, the Indian operator of the Domino’s Pizza and Dunkin’ Donuts brands as master franchise in India, is about to fully acquire the Fides Food Systems based out of the Netherlands. This acquisition will be done through the company’s wholly-owned subsidiary, Jubilant Foodworks Netherlands BV for a consideration of around £24.80 million.
This deal will have an interesting downstream impact. The acquisition of Fides by Jubilant Foodworks Netherlands will indirectly enable the Indian company to indirectly gain ownership of 32.81% in Domino’s Pizza Eurasia. This company is the exclusive master franchisee of Domino’s Pizza brand in major central Asian nations like Turkey, Russia, Azerbaijan, and Georgia.
Jubilant Foodworks Netherlands BV and Jubilant Foodworks of India will act as guarantors for the investment obligation of its wholly-owned subsidiary. To this end, it has entered into a purchase agreement with Turkish Private Equity Fund, the sole member of Fides. Domino’s Pizza or DP Eurasia is a public limited company which is listed on the London Stock Exchange.
In India, the Jubilant Foodworks brand is owned and operated by the Shyam Bhartia group. The Jubilant group also includes other companies like Jubilant Life Sciences and Jubilant Industries owned by the same Shyam Bhartia group.