Just Eat takes a bite out of businesses in Italy, Spain, Mexico and Brazil

 
Catherine Neilan
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Tasty deal (Source: Getty)

Just Eat has taken a bite out of online takeaway rivals in Spain, Italy, Brazil and Mexico.

The four businesses - La Nevera Roja in Spain, PizzaBo/HelloFood in Italy, Hello Food Brazil and Hello Food Mexico - cost the UK-listed firm €125m (£94.7m), which will be funded from cash resources, and gives Just Eat huge reach as it attempts to be a market-leader throughout its territories.

The takeaway delivery market in these four territories is worth more than £8bn.

Just Eat said outside of one-off exceptional transaction and integration costs, the deal would boost its adjusted EPS for the 2016 financial year and to add £5m to 2017 EBITDA. That will rise to EBITDA of £10m per annum in 2018.

The deal for the businesses in Italy, Brazil and Mexico completes today: the Spanish acquisition is yet to receive regulatory approval, but is expected by the end of the second quarter.

On completion, operational control of hellofood Brazil will pass to iFood, and the business is expected to be sold on to the joint venture in due course.

David Buttress, chief executive of Just Eat, said: "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.

"We are delighted to welcome our new team members to the Just Eat family, and we look forward to working with them to improve the takeaway experience for both restaurant partners and consumers in Spain, Italy, Brazil and Mexico."

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