SHANGHAI, July 21, 2020 (GLOBE NEWSWIRE) -- 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.
Dash Brands Ltd.
Melissa Calandruccio, ICR