News
Domino's Japan changes franchisee ownership
January 24, 2010
Bain Capital, a leading global private investment firm, today announced the signing of a definitive agreement to acquire Higa Industries Co. Ltd., the long-time master franchisee of Domino's Pizza in Japan. Bain Capital will acquire Higa Industries from its three current shareholders – Duskin Co. Ltd., Daiwa SMBC Capital and Ernest M. Higa, the company's founder and CEO. Financial terms of the private transaction were not disclosed.
Domino's Pizza has been operating in Japan for 25 years under an exclusive master franchise agreement between Higa Industries and Domino's Pizza International Inc., a wholly owned subsidiary of Domino's Pizza LLC. Higa Industries currently operates 179 franchised Domino's Pizza stores in Japan. Domino's Pizza was the first pizza delivery chain in Japan and is today the world leader in pizza delivery with more than 8,000 stores in more than 60 countries.
"Under the franchise agreement with Higa Industries, Domino's Pizza has built a strong competitive position in the pizza delivery industry in Japan by leveraging its distinctive product, high quality service, and unique online marketing strategies," said David Gross-Loh, a managing director at Bain Capital in Tokyo, in a news release. "The strength of this position is evident when you consider that, despite a tough environment for the restaurant industry, the company has achieved steady growth in both sales and profit in Japan over the last three years."
"We look forward to working with the Higa Industries team to support the continued growth of Domino's Pizza in Japan and further strengthen its competitive edge," added Yuji Sugimoto, a managing director at Bain Capital. "We believe there are significant opportunities for store growth, operational improvement and attractive new product introductions, all of which can be aided by our knowledge of Domino's Pizza and the resources of its global operations network."
Bain Capital has had a long and successful history with Domino's Pizza. The firm acquired a majority stake in Domino's Pizza in a private transaction in 1998. Domino's Pizza, Inc. became a public company in 2004, and Bain Capital retains a significant minority stake in the company.
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