8th May 2015 06:36
LONDON (Alliance News) - Just Eat PLC Friday said it will buy Australian online takeaway company Menulog Group Ltd for AUD855 million, financed from the proceeds of an equity issue, a move that expands its reach into both Australia and New Zealand.
Menulog has more than 5,500 restaurants and 1.4 million consumers, Just Eat said, and its order volume grew 96% in the year in the three months ended March 31. It generated GBP13.5 million in revenue in the year to March 31.
The equity fundraising is expected to be launched in mid- to late-May, following receipt of the approval of the acquisition by the Foreign Investment Review Board in Australia. Completion of the equity fundraising is expected early to mid June.
"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. The Menulog founders have together built a great business and I look forward to working closely with Menulog's CEO and his experienced management team in the coming months," Chief Executive David Buttress said in a statement.
Just Eat said it expects to drive cost and revenue synergies at the acquired company, and there's significant upside potential from expansion in earnings before interest, tax, depreciation and amortisation margin.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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