Just Eat sells Grubhub to Wonder and flies on the stock exchange
US subsidiary sold for USD 650m. Company: cash generation improves, no impact on year-end forecasts
by Giuliana Licini
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(Il Sole 24 Ore Radiocor) - Just Eat Takeaway is flying on the Amsterdam Stock Exchange thanks to the sale of US subsidiary Grubhub, which has long been on the group's agenda. The stock of Europe's leading meal ordering and home delivery company is up 20 per cent. Just Eat announced that it had entered into a definitive agreement to sell Grubhub to Wonder Group for an enterprise value of USD 650 million.
The US subsidiary 'will be transferred with its $500m of senior securities and, following customary adjustments, the company's net proceeds are expected to be up to $50m,' the Just Eat statement said. The transaction is expected to be completed in the first quarter of 2025, following regulatory approvals, and once the sale is finalised, Just Eat Takeaway will have no liabilities associated with Grubhub.
No impact on full-year forecast
.The Dutch company also said that the transaction will have no impact on its full-year forecasts set out last October and will strengthen its ability 'to support investments in countries where it has a greater competitive advantage' and improve its financial situation. The group, which exited France and New Zealand this year, operates in 18 countries. "The sale of Grubhub to Wonder will increase Just Eat Takeaway.com's cash generation capabilities and accelerate our growth," commented founder and CEO Jitse Groen.
The Dutch company had been trying to get rid of Grubhub since 2022, after acquiring it in 2020 in a USD 7.3 billion share transaction. Grubhub, however, did not perform as expected and was in fact a drag on the performance of the entire group. On Tuesday, the Wall Street Journal had reported on advanced discussions about the sale. Wonder is a food delivery start-up led by former Walmart manager Marc Lore. Grubhub's enterprise value of $650 million includes $500 million in senior securities and $150 million in cash, the US company said in a note. Analysts at Jp Morgan note that they had previously estimated Grubhub's enterprise value at $1.2 billion, but believe the market will view the transaction as positive, even though it came at a lower valuation.
