- Amsterdam-based Just Eat Takeaway announced it is buying U.S. based GrubHub Inc (NYSE: GRUB) for $7.3 billion. These are the details.
Amsterdam-based Just Eat Takeaway announced it is buying U.S. based GrubHub Inc (NYSE: GRUB) for $7.3 billion. This will create one of the largest meal-delivery companies during a time when the coronavirus pandemic has been driving growth in the sector.
Just Eat Takeaway is going to pay $75.15 per share for Grubhub in the all-stock deal. This deal is a blow for Uber Technologies, which has been in acquisition talks with Grubhub for over a month.
Grubhub shareholders will be entitled to receive American depositary receipts representing 0.6710 Just Eat Takeaway.com ordinary shares in exchange for each of their Grubhub shares.
As part of the deal, GrubHub Inc (NYSE: GRUB) will be launching Just Eat Takeaway in the U.S. market — which will increase the company’s global reach. Just Eat is already available in Canada, Australia, Brazil, and across Europe.
Dutch billionaire Jitse Groen launched Takeaway in 2000 out of his university dorm room. And less than two months ago, Takeaway received antitrust clearance from the UK to buy Just Eat for $8 billion.
Grubhub chief executive officer and co-founder Matt Maloney oversaw a merger with rival Seamless in 2013. Due to the rapid growth of DoorDash and Uber Eats, GrubHub lost significant market share.
For the first quarter, Grubhub reported an 8% increase in gross food sales at $1.6 billion. But the company reported a loss of $33 million.
“Matt and I are the two remaining food delivery veterans in the sector, having started our respective businesses at the turn of the century, albeit on two different continents,” said Groen in a statement. “Both of us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector.”
Maloney is going to join the Just Eat Takeaway board and he will oversee the North America operations. And two Grubhub directors will be joining the Just Eat supervisory board.
“When Grubhub and Seamless were founded, the online takeout industry didn’t exist in the U.S.. My vision was to transform the delivery and pick-up ordering experience. Like so many other entrepreneurs, we started modestly – restaurant by restaurant in our Chicago neighbourhood. Today, Grubhub is a leader across North America,” explained Maloney. “I’ve known Jitse since 2007 and his story is much like mine. Combining the companies that started it all will mean that two trailblazing start-ups have become a clear global leader. We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth. Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best, and most rewarding way to order food from your favorite local restaurants in North America and around the world. We could not be more excited.”
The deal is expected to close in Q1 2021.
