Just Eat plc, a leading global marketplace for online food delivery, has today announced that it has agreed the acquisition of Hungryhouse Holdings Ltd from Delivery Hero Holding GmbH for an initial consideration of £200m.
A further cash amount of up to £40m may also be payable, subject to the performance of Hungryhouse between signing and completion of the transaction.
The acquisition is consistent with Just Eat's strategic ambition to accelerate its growth and increase its market presence in every geography in which it operates. Hungryhouse is an online food company operating solely in the UK, with a comparable business model to Just Eat.
The acquisition would generate significant benefits for Just Eat’s restaurant partners and customers. It would create an enlarged customer base for restaurant partners to access, while increasing the breadth of choice on offer to UK consumers through Just Eat’s platform. The combination of the two businesses would also generate compelling economic benefits of scale, with high operating leverage driving material synergies.
On a 2017 pro forma basis, assuming ownership and integration for the full reporting year, Just Eat would expect hungryhouse to generate EBITDA of between £12-15m, excluding one-off exceptional transaction and integration costs of around £1 million. The acquisition is expected to be EPS accretive in the first full year of Just Eat’s ownership.
The acquisition would be funded through cash resources and credit facilities.
David Buttress, Chief Executive Officer of Just Eat, commented, “The UK has long been an engine of growth for Just Eat. While we have significantly expanded internationally in recent years, we have remained focused on building a high growth, sustainably profitable business domestically.
'Through this transaction, we would extend our market presence in the UK and sustain high levels of growth given the considerable opportunity in this market.”
Niklas Östberg, CEO of Delivery Hero, commented, “The sale of Hungryhouse to Just Eat rationalizes our global footprint, and we remain focused on operating market leading brands, globally.
'Proceeds from this sale will allow us to pursue further global growth and profitability opportunities, as we have consistently and successfully done in recent years.
'We also want to thank the entire hungryhouse team – this transaction reflects their amazing achievements within the Delivery Hero Group since 2011.”