Online food delivery business Just Eat has acquired rival Hungryhouse for £200m.
The deal will rise to £240m if Hungryhouse hits performance benchmarks between now and the completion of the deal.
Meanwhile, the company has also announced the acquisition of Canadian firm Skipthedishes for £66m, which features 2,900 restaurants, to expand its operations in the country.
Just Eat said that the Hungryhouse integration would be generate additional EBITDA of £12-15m, excluding integration costs of £1m.
Just Eat chief executive David Buttress 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.”
Niklas Östberg, chief executive of Hungryhouse owner Delivery Hero, added: “The sale of hungryhouse to Just Eat rationalizes our global footprint, and we remain focused on operating market leading brands, globally. Proceeds from this sale will allow us to pursue further global growth and profitability opportunities, as we have consistently and successfully done in recent years. We also want to thank the entire hungryhouse team – this transaction reflects their amazing achievements within the Delivery Hero Group since 2011.”
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