London and New York based Private Investment firm Clayton, Dubilier & Rice has acquired a significant stake in MOD Pizza through an investment of $150 million. The investment will help accelerate MOD Pizza’s continued expansion in the casual dining sector.
MOD Pizza has 433 locations and having entered the UK market in 2016 now has 10 UK locations.
With this additional capital, MOD Pizza plans to maintain its rapid growth across existing and new markets in the US and internationally.
Ken Giuriceo, CD&R Partner, and Paul Pressler, CD&R Partner and former CEO of Gap Inc. and senior Disney executive, will both join the MOD board of directors.
Following the announcement Ken Giuriceo, CD&R Partner said: “We could not be happier with our new MOD partnership and we look forward to working closely with management on strategies and operational initiatives to ensure that the company profitably achieves its ambitious growth plans. The MOD team has created an exciting, market-leading business with a truly special culture and purpose.”
In addition to continued growth, MOD plans to enhance the experience it provides customers through investments in off-premise and digital capabilities, while continuing to look for ways to use its business as a platform to make a positive social impact.
Paul Pressler added: “MOD has made important investments in online and mobile app ordering, innovative digital marketing strategies and customer loyalty programs and leads its competition in virtually all relevant customer satisfaction scores. We are especially excited about the new store opening opportunity ahead of the company, which will create an even more valuable enterprise.”
The announcement comes the same day as Jamie Oliver’s casual dining restaurant business went into administration. The casual dining sector in the UK in many observer’s view is already saturated, so the roll out in the UK of MOD Pizza will be watched with interest.
Founded in 1978, Clayton, Dubilier & Rice is a private investment firm. Since inception, CD&R has managed the investment of $28 billion in 85 companies representing a broad range of industries with an aggregate transaction value of more than $125 billion. CD&R has offices in New York and London.