Netherlands-based Fides Food to be acquired by Indian foodservice company Jubilant Foodworks Limited for €28.7M

Jubilant Foodworks Limited (JFL) is one of the largest foodservice company in India and operates Domino’s Pizza and Dunkin’ Donuts outlets in the country. The company has recently announced that it will fully acquire Fides Food Systems Coöperatief U.A., Netherlands (Fides) for an agreed investment of approximately £24.80M (approx €28.7M) through its wholly-owned subsidiary – Jubilant Foodworks Netherlands B.V.

Here’s what’s happening

“Fides is the beneficial owner of 32.81 per cent of equity shares of DP Eurasia N.V. (DP Eurasia). DP Eurasia is a public company listed with London Stock Exchange PLC and is the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia,” mentions the company in its BSE filing. Established in 1875, BSE (formerly known as Bombay Stock Exchange), is an Indian stock exchange. 

To this end, Jubilant Foodworks Netherlands B.V. and Jubilant Foodworks Limited – acting as a guarantor for the 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.

According to the filing, the indicative time period for completion of the acquisition is within 20 business days of execution of the purchase agreement to fully acquire Fides. The acquisition of Fides by Jubilant Foodworks Netherlands B.V. will enable Jubilant Foodworks Limited to indirectly hold 32.81 per cent shares in DP Eurasia, mentions JFL in the filing. 

About Jubilant Foodworks Ltd

The Noida, India-based firm Jubilant Foodworks Limited is part of Jubilant Bhartia Group and claims to be India’s largest foodservice company. Its Domino’s Pizza franchise extends across a network of 1,314 restaurants in 285 cities (as of December 31, 2020). 

The Company has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. At present, it operates in India, and through its subsidiary companies’ in Sri Lanka and Bangladesh. 

In addition, the company also enjoys exclusive rights to develop and operate Dunkin’ Donuts restaurants in India. Currently, it has operations in 27 restaurants across 8 cities in India (as of December 31, 2020). 

Shares overview

Reportedly, shares of DP Eurasia on Friday closed trading on the London Stock Exchange up 11.11 per cent at £70 apiece (approx €81).

As for JFL, it was trading at 4.08 per cent up at about $42.38 (approx €34.86) during Monday mid-morning. It reported consolidated net sales of about $541M (approx €445M) for FY20, with a post-tax profit of about $38M (approx €31.2) for the same period.