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UK fast food delivery chain Domino’s Pizza Group (DPG) has completed the acquisition of Hallo Pizza, an independent pizza chain in Germany.

The acquisition was carried out through DPG’s German joint venture, Daytona JV, for €32m in cash and debt free basis.

Additionally, €20-30m of costs are estimated to be incurred over the next two to three years to fund store conversions and other transaction costs.

The deal is expected to boost the German joint venture’s market position and increase its store count from 209 to nearly 300-340 in Germany as well as enhance the profitability of former Hallo Pizza stores and existing Domino’s stores.

Approximately 45 stores from either the existing store network or Hallo Pizza are expected to be consolidated over time.

With a national footprint of 170 franchise stores throughout Germany, Hallo Pizza generated network sales of €80.2m for FY16.

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By GlobalData

Conversion of franchise contracts to the Domino’s brand will take place over the next two to three years.

In December, DPG reached agreement to acquire a further 44.3% interest in Domino’s Iceland for €30.2m (£26.7m) leading to an ownership of 95.3%.

In addition, Domino’s Iceland’s Birgir Örn Birgisson and Steinar Sigurosson will retain between them a 4.7% shareholding in the quick service restaurant.

Domino’s Iceland owns the Domino’s Master Franchise in the country and operates 23 stores.