Just Eat has signed a £94.7 million deal to acquire four online food delivery companies from German startup builder Rocket Internet, as it looks to expand from the increasingly crowded UK market.
The London-based company has agreed to acquire Spain’s La Nevera Roja, Italy’s PizzaBo/hellofood Italy, Brazil’s hellofood Brazil, and Mexico’s hellofoodMexico. Rocket Internet owns the European companies and is the main investor in hellofood Brazil and hellofood Mexico.
Just Eat, which is listed on the London Stock Exchange, said the acquired businesses will compliment its existing operations in the four countries its acquisitions operate in, adding that it will bring scale, focus and new talent to Just Eat’s local operations.
Following the announcement, Just Eat’s stock rose more than 9% in early London trading.
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.”
Just Eat believes the takeaway delivery market in the four countries it is moving in on could be worth as much as £8 billion.
In the UK Just Eat is competing with an increasing number of food delivery companies, including Delivery Hero, Hungry House, and Deliveroo.
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