(Alliance News) - Domino's Pizza Group PLC on Monday said it has agreed to sell its business in Sweden, PPS Foods AB, to a company controlled by Birgir Bieltvedt, the indirect owner of another Domino's franchiser, DP Norway.
Domino's Pizza Group will pay the buyer EUR2 million in cash to take the loss-making business off its hands.
Domino's Sweden is the master franchisee for Domino's Pizza in Sweden. It operates 14 stores, and its gross assets were valued at GBP9.8 million as of June 30 last year. However, it suffered an underlying operating loss of GBP4.0 million in 2019.
The company said the disposal, which is expected to be completed at the start of May, is part of its plan to focus on its core UK and Ireland operations and follows the sale of Domino's Norway last year.
Outside the UK and Ireland, Domino's Pizza Group continues to hold the master franchise agreement with the US's Domino's Pizza Inc to own, operate and franchise Domino's stores in Switzerland, Iceland and Liechtenstein.
Domino's Pizza Group shares were up 1.2% early Monday in London at 312.40 pence.
By Tom Waite; thomaslwaite@alliancenews.com
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Dominos (DOM)