(MENAFN- ProactiveInvestors - UK) Online takeaway service Just Eat (LON:JE.) is developing a taste for business in Spain Italy and the Americas.
Just Eat has agreed to buy four businesses from Rocket Internet in Europe and Foodpanda in Brazil and Mexico for 125mln (94.7mln) using cash from existing resources.
The businesses acquired are online takeaway food businesses trading in Spain (La Nevera Roja) Italy (PizzaBo/Hellofood Italy) Brazil (Hellofood Brazil) and Mexico (Hellofood Mexico).
Just Eat said the businesses fitted in well with its existing operations in the countries which have a combined takeaway delivery market of more than 8bn.
It added that the deals would lead in time to material savings and meaningfully higher sustainable margins.The acquired businesses increased orders by 83% in 2015.
Just Eat expects the acquisition net of one-off exceptional transaction and integration costs to be accretive to adjusted earnings per share for the 2016 financial year and to add 5mln to 2017 pre-tax underlying earnings.
Further material savings and margin improvements are expected as the combined businesses achieve more rapid and profitable growth with improvements to EBITDA of 10mln a year expected in 2018.
The acquisition of the businesses in Italy Brazil and Mexico will complete Friday. The Spanish deal is subject to local regulatory approval and is expected to complete by the end of the second quarter this year.
Chief executive David Buttress said:"This transaction reflects our ambition to make strategic value-enhancing acquisitions."
Rocket Internet's chief executive and founder Oliver Samwer said:"This sale to Just Eat represents a positive step forward for the global online takeaway industry."
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