In a significant move, Just Eat Takeaway.com (JTKWY) has announced the sale of its US food delivery business, Grubhub, to Wonder Group for an enterprise value of $650 million. This deal marks the culmination of ongoing efforts by Just Eat Takeaway.com to divest Grubhub, following pressure from investors who felt the business was not a strategic fit for the company’s overall portfolio.
The sale of Grubhub is expected to generate net proceeds of up to $50 million for Just Eat Takeaway.com after adjustments. The transaction is set to close in the first quarter of 2025, subject to regulatory approval. This move is strategically designed to improve Just Eat Takeaway.com’s financial position, allowing the company to invest in its key markets and boost its cash flow.
Wonder Group, known for its acquisition of meal kit company Blue Apron in 2023, plans to integrate Grubhub into its existing food service platform. This acquisition signals Wonder Group’s ambition to expand its reach in the US food delivery market, adding Grubhub’s extensive network of restaurants and delivery services to its portfolio.
Following the announcement, shares of Just Eat Takeaway.com surged by 20%, indicating investor confidence in the strategic decision to divest Grubhub. This sale signifies a turning point for Just Eat Takeaway.com as it focuses on its core markets and strengthens its financial standing. It also highlights the ongoing consolidation in the food delivery sector as companies like Wonder Group seek to expand their dominance in the market.
