Dash Brands Ltd. Announces Investment by Domino’s Pizza
July 21 2020 - 4:40PM
Dash Brands Ltd., which through its subsidiaries is the master
franchisee of Domino’s Pizza® in China (“Dash Brands” or the
“Company”), today announced that during the second quarter of 2020
a subsidiary of Domino’s Pizza, Inc. (“Domino’s Pizza”) (NYSE:DPZ)
acquired a non-controlling interest in the Company for $40 million.
Based on the terms of the agreement, Domino’s Pizza is required to
invest an additional $40 million in the Company in the first
quarter of 2021, assuming specified performance conditions are
satisfied, and may alternatively make the additional investment at
its option if such performance conditions are not satisfied.
In conjunction with the investment, Dash Brands
is pleased to welcome Joe Jordan, Executive Vice President,
International of Domino's Pizza, as a member of the Company’s Board
of Directors.
“We are very pleased to make this announcement
today. We have accomplished a primary goal to deepen the commitment
and build upon our relationship with Domino’s Pizza. I’m proud of
the Dash Brands team and the effort they have put forth to execute
our growth plan for the Domino’s brand in China. This significant
investment highlights the excitement Domino’s Pizza has in our
leadership to grow the brand in China,” said Frank Krasovec,
Chairman and co-founder of Dash Brands Ltd. “We welcome Joe Jordan
to our Board of Directors. Joe’s knowledge and global experience
will prove, I believe, to be invaluable as we extend brand
development, growth, and further expansion across China.”
Mr. Jordan said, “We are excited about our
investment with the Dash Brands team as they continue to grow the
Domino’s brand in China, a market with tremendous long-term
potential. I am excited to join the Dash Brands Board of Directors
and play a role in helping Dash Brands achieve the potential for
the Domino’s brand in China that we all believe is possible.”
Aileen Wang, Chief Executive Officer of Dash
Brands’ Chinese subsidiaries commented, “With over 300 stores
across nine cities in China and growing over 30% for the past 5
years, Domino’s is well positioned to be the leading pizza delivery
brand in the markets we enter. Our menu is mainly locally developed
by keeping the global classic pizza and adding on more Chinese
preferences. Furthermore, Domino’s leads with delivery expertise
and technology innovation and through our various online ordering
options, currently has approximately 85% of orders coming from
digital orders.” Wang concluded, “We are thrilled to continue on
this early part of our growth strategy and leverage Domino’s
Pizza’s expertise as we further expand the Domino’s brand
throughout China.”
Jefferies LLC served as advisor to Dash Brands
and Goldman Sachs & Co. LLC served as advisor to Domino’s
Pizza.
About Dash Brands Ltd. Dash
Brands Ltd. (Dash Brands) through its subsidiaries, serves as
Domino’s Pizza’s master franchisee in the China region (mainland
China, Hong Kong and Macau). Domino’s is the largest pizza company
in the world based on global retail sales. Dash Brands’
subsidiaries have seen total sales growth rate higher than 30% for
the last five years. Through its subsidiaries, Dash Brands
currently owns and operates over 300 stores in nine cities,
including 113 in Shanghai, 86 stores in Beijing and many stores in
Shenzhen, Guangzhou, Hangzhou, Tianjin, Nanjing and Suzhou. In
China, Dash Brands’ subsidiaries offer various quick online
ordering options such as through the website, WeChat, and App, with
approximately 85% of orders coming from digital orders. Every order
comes with a 30 minute delivery promise, or customers receive a
free pizza coupon as a compensation.
Contact:
Dash Brands Ltd.Melissa
Calandruccio, ICRMelissa.Calandruccio@icrinc.com646-277-1273
Dominos Pizza (NYSE:DPZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dominos Pizza (NYSE:DPZ)
Historical Stock Chart
From Apr 2023 to Apr 2024