Just Eat gobbles up two rivals in deals worth up to £300 million

Just Eat today unveiled a pair of acquisitions worth up to £300 million, including the takeover of UK rival hungryhouse.

The takeaways delivery firm will pay German group Delivery Hero £200 million for hungryhouse.

It could fork out a further £40 million if hungryhouse hits certain performance targets.

Just Eat said the deal would sustain UK growth.

Third-quarter order growth in Britain slowed to 28% from the year earlier’s 50%, the company said last month.

The tie-up should boost Just Eat’s earnings by £12 million to £15 million from next year, while restaurant partners will benefit from a larger customer base.

Customers should get greater choice too. Around 1000 of the restaurants on hungryhouse’s books are not currently working with Just Eat, boss David Buttress said.

Just Eat also bought Canadian rival SkipTheDishes for £66.1 million. That would leave the company best placed to address Canada’s fast-growing market, Buttress added.

The deals will be funded by cash resources and credit facilities.