Just Eat expands global footprint with double acquisition
Acquisition of UK-based hungryhouse and Canadian competitor SkipTheDishes is latest move in global campaign of expansion
Just Eat, the food order and delivery service, has today announced its acquisition of rival delivery platforms hungryhouse – which operates solely in the UK – and Canadian company SkipTheDishes, as it looks to accelerate growth and increase its global presence.
UK-headquartered Just Eat has taken over hungryhouse – featured in our Dragons’ Den success stories – from German owners Delivery Hero for an initial sum of £200m.
A potential £40m will also be paid depending on the performance of hungryhouse between signing and the completion of the deal.
The acquisition of SkipTheDishes for an initial consideration of £66.1m will see Just Eat take over its 2,900 unique restaurants and 350,000 active customers – which are predicted to bring in $23.5m in revenues by the end of the year. A further cash payment of £54.1m may also be payable subject to the meeting of certain financial targets.
Just Eat expects hungryhouse to generate EBITDA of between £12m and £15m for 2017 as it takes over its UK customers base and restaurant partners, while its acquisition of SkipTheDishes will see it begin to penetrate the estimated £1.5bn Canadian market.
The deals mark the latest step in a campaign of global expansion for JustEat, after the acquisition of four international competitors in Spain, Italy, Brazil and Mexico for a combined sum of £94.7m in February this year.
Commenting on the hungryhouse acquisition, David Buttress – a Startups Awards judge and CEO of Just Eat – said:
“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.”
Discussing Just Eat’s acquisition of SkipTheDishes, Buttress added: “Canada is a phenomenally exciting country for online food delivery, with significant runway for growth and a clear opportunity to drive channel shift.
“SkipTheDishes’ outstanding team, technological know-how and operational excellence has enabled it to develop a business model well-suited to Canada’s unique market conditions. It will complement our existing operations so that Just Eat is best-placed to address this fast-growing market.”