5th Feb 2016 07:33
LONDON (Alliance News) - Just Eat PLC on Friday said it has acquired four takeaway businesses for a total of EUR125.0 million, in a move to beef up its position in four different countries.
The FTSE 250 food deliver company said it bought takeaway food businesses from Rocket Internet in Spain and Italy, and from foodpanda in Brazil and Mexico, with the acquisitions to be paid for with existing cash.
Just Eat expects the acquisitiosn, net of one-off exceptional transaction and integration costs, to boost adjusted earnings per share for the 2016 financial year and to add GBP5.0 million to 2017 earnings before interest, tax, depreciation and amortisation. The company expects "material synergies and margin improvements" combined businesses grow, with improvements to EBITDA of GBP10 million per annum to follow in 2018.
"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," Chief Executive David Buttress said.
The value of the gross assets of the businesses acquired as recorded at the end of 2014 was EUR6.4 million. The total pretax losses for that year amounted to EUR16.3 million. The acquired businesses grew orders by 83% in 2015, Just Eat said.
The acquisition of the businesses in Italy, Brazil and Mexico will complete Friday. The acquisition of the Spanish business is subject to regulatory approval from the local competition authority, the Comisión Nacional de los Mercados y la Competencia, and it is anticipated that it should complete by the end of the second quarter of 2016.
By Samuel Agini; [email protected]; @samuelagini
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