Just Eat acquires food delivery platforms in four countries for €125m

Food delivery platform Just Eat has agreed to acquire takeaway businesses in four markets worldwide for a combined value of €125m.

The business will acquire La Nevera Roja in Spain, PizzaBo in Italy and Hellofood’s Italian, Brazilian and Mexican subsidiaries from Rocket Internet and Foodpanda.

“The acquired businesses are highly complementary to Just Eat’s existing businesses in these important territories and the acquisition is in line with Just Eat’s strategic ambition to be a market-leader in the geographies in which it operates, bringing scale, focus and new talent to our local operations,” the London-headquartered company said.

It added that the takeaway delivery market in Spain, Italy, Mexico and Brazil is worth over £8bn combined.

Just Eat CEO David Buttress said: “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.”

Rocket Internet founder and CEO Oliver Samwer added: “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.”

Hellofood Brazil will be sold on to iFood, the country’s largest online food delivery company.

Just Eat said that it hoped the acquisitions would allow for “compelling economic benefits of scale that lead, in time, to material synergies and meaningfully higher, sustainable margins”.

In aggregate, the acquired businesses grew orders by 83% in 2015, and Just Eat expects the deal to add £5m to its pre-tax earnings in 2017.

It is expected that the firm will sell Hellofood Brazil on to iFood, the Brazilian leader in online food deliveries and Just Eat’s joint venture in the country with Movile.