New York Pizza – contrary to what the name suggests, a traditional Dutch company – comes into Norwegian hands. The listed Orkla takes 75% of the shares in the hands of the Dutch pizza chain, which comes to an estimated value of around €150 million due to the deal.
With a total of more than 230 franchise sales locations, New York Pizza is the second largest player in the Dutch market. Last year, these locations collectively sold around 11.5 million pizzas, generating more than €54 million in revenue.
By joining forces with Orkla (> 22,000 employees), a listed Norwegian provider of consumer goods, bakery, snacks and personal care products, New York Pizza aims to accelerate its international growth strategy. The Dutch pizza chain recently entered the Belgian market (by the end of the year New York Pizza plans to operate from six locations), and it is also active with two locations in Cologne, Germany.
New York Pizza, headquartered in Amstelveen, has sold 75% of its shares to the Norwegians, with the remaining 25% remaining in the hands of current shareholders.
Philippe Vorst, CEO of New York Pizza, said of the deal: “This is an important step that will allow us to further scale our business model…we look forward to working together and realizing the company’s international growth potential.”
Jaan Ivar Semlitsch, President and CEO of Orkla, added: “This acquisition fits Orkla’s strategic ambition to grow in the Out-of-Home segment, which is growing faster than the traditional supermarket channel. We are delighted to add New York Pizza, a well-run business with a well-functioning franchise model.”
Euro Pizza Products, a subsidiary of New York Pizza that produces pizza dough, is also part of the deal. This branch supplies dough and other pizza ingredients and related products to New York Pizza, but also has an independent sales channel through which it exports its products to customers in 18 European countries.
Kotipizza, part of Orkla, is Euro Pizza Products’ largest third-party customer, and as a result, “we see several opportunities for closer collaboration between New York Pizza and Kotipizza,” said Semlitsch.
Dealmakers
The transaction between New York Pizza and Orkla was supported by teams of M&A consultants from various agencies. Orkla engaged Roland Berger for the commercial due diligence on New York Pizza and their growth prospects. Other advisory parties that supervised the deal were Axeco (Dutch M&A advisors) and Big Four firm Deloitte.
Legal advice was provided by Houthoff, Florent, Buren, and Maverick Advocaten, while JSA Tax provided tax advisory services. Both New York Pizza and Orkla also had an in-house team that contributed to the conclusion of the deal.
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