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Jubilant Foodworks to buy Netherlands-based Fides Food

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The fast-food chain operator said will fully acquire Fides Food Systems Cooperatief UA Netherlands (Fides) for an agreed investment of 24.8 million pounds, through its wholly-owned subsidiary Jubilant FoodWorks Netherlands BV.

Fides is the beneficial owner of 32.81% of equity shares of DP Eurasia N.V. (DP Eurasia). DP Eurasia is a public company listed with London Stock Exchange and is the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia. DP Eurasia (together with its subsidiaries) offers pizza delivery and takeaway/ eat-in facilities at 771 stores (568 in Turkey, 190 in Russia, 9 in Azerbaijan and 4 in Georgia as on 31 December 2020).

To this end, Jubilant Foodworks Netherlands B.V. and Jubilant Foodworks (acting as a guarantor for investment obligation of its wholly owned subsidiary) has entered into a purchase agreement with Turkish Private Equity Fund II L.P., which is the sole member of Fides.

Shyam S. Bhartia, chairman and Hari S. Bhartia, co-chairman, Jubilant Foodworks said, "We are happy to announce our acquisition of Fides for 32.81% equity stake in DP Eurasia, one of the largemaster franchisee ofthe Domino's Pizza brand. We have been partners with Domino's in India for more than twenty-five years, with that experience we hope to add value in DP Eurasia's business and also create value for our shareholders."

The announcement was made after market hours on Friday, 19 February 2021. On a consolidated basis, Jubilant Foodworks' net profit jumped 21.7% to Rs 123.92 crore on 0.2% fall in net sales to Rs 1,069.28 crore in Q3 December 2020 over Q3 December 2019.

Shares of Jubilant Foodworks (JFL) rose 0.83% to Rs 2,975.40 on BSE. JFL is India's largest food service company. Its Domino's Pizza franchise extends across a network of 1,314 restaurants in 285 cities (as of 31 December 2020). The company also enjoys exclusive rights to develop and operate Dunkin' Donuts restaurants in India, has in operation 27 restaurants across 8 cities in India (as of 31 December 2020).

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, February 22 2021. 09:24 IST