Published On: Fri, Feb 5th, 2016

Just Eat Announces Acquisition Of Online Food Takeaway Businesses

Just Eat

Shares in JustEat have dropped by over 25% in the last month.

JUST EAT plc (LON:JE) which brands itself as the world’s leading digital marketplace for takeaway food delivery announced on Friday that it has agreed the acquisition of four businesses from Rocket Internet and foodpanda for €125.0 million (£94.7 million).

In the companies statement it said it had acquired online takeaway food businesses La Nevera Roja in Spain, PizzaBo/hellofood in Italy and hellofood in Brazil and Mexico.

The acquired businesses are very similar to JUST EAT’s existing businesses in what the company identified as “important territories” which is in line with the companies strategic ambition to be a market-leader in the geographies in which it operates, bringing scale, focus and new talent to our local operations whilst reaching a market worth £8 billion.

David Buttress, CEO, commented:

“This transaction reflects our ambition to make strategic, value-enhancing acquisitions that consolidate our leadership of the global digital marketplace for takeaway food delivery. JUST EAT has enhanced its market-leading positions in geographies that we understand and where our existing businesses are performing strongly.

We are delighted to welcome our new team members to the JUST EAT family, and we look forward to working with them to improve the takeaway experience for both restaurant partners and consumers in Spain, Italy, Brazil and Mexico.”

Oliver Samwer, CEO and Founder, Rocket Internet, commented:

“This sale to JUST EAT represents a positive step forward for the global online takeaway industry enabling all parties to focus their resources on building bigger and better long term businesses in their key geographies”
The company said the success of their 2014 consolidation in Brazil demonstrates the highly effective nature of in-market M&A in the industry. JUST EAT’s joint venture with Movile, iFood, is the Brazilian market leader which processed 1.1 million orders in December 2015, up 150% year-on-year.

The acquisition is to be funded through existing cash resources.

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