Just Eat acquires Australian rival Menulog for £445m
UK food delivery service will take presence in 13 countries with projected 67 million annual orders
Takeaway food delivery service Just Eat has acquired competitor Menulog for almost half a billion pounds, as part of its continuing international expansion.
The £445m deal will see the FTSE 250 company launch in Australia and New Zealand, taking its total global presence from 11 to 13 countries.
Headquartered in the UK since 2006, Just Eat will fund the acquisition by issuing new shares after it floated on the London stock exchange in April last year.
The company identified similarities between the takeaway food culture, fragmented restaurant market, high levels of disposable income and strong e-commerce adoption found in the UK and its new Antipodean market.
Combined, the Australian and New Zealand takeaway delivery market is worth £1.6bn, with Menulog generating £13.5m in revenue last year from its 1.4 million active customers and database of 5,500 restaurants.
This latest deal creates a global organisation that could see an estimated 67 million annual orders.
Chief executive of Just Eat, Daniel Buttress, commented: “Since the time of our IPO last year, we have consistently stated that participating in a disciplined manner in industry consolidation was an important strategic objective for Just Eat.
“The acquisition of Menulog, a business with strong leadership in an attractive and fast-growing market, is fully consistent with this approach and will be an important addition to the Just Eat business.”