The Dutch food delivery company had acquired the American rival for $7.3b (£4.7b) at the height of the pandemic.
Just Eat Takeaway has agreed to sell Grubhub for an enterprise value of $650m (£510m), which is less than a tenth of the price it paid to acquire the brand in 2021.
Dutch food delivery company Just Eat Takeaway.com completed its acquisition of its American rival Grubhub in 2021 in a $7.3b (£4.7b) deal to create the world’s largest online food delivery brand outside of China.
The deal had to be cleared by the Competition and Markets Authority (CMA) and marked Just Eat’s entry into the US at the height of the pandemic.
However, it was announced today that Just Eat will sell Grubhub to Wonder Group at a 90% discount to its original valuation.
Just Eat said the sale would increase the company’s ability to “support investment in countries in which it has the greatest competitive advantage” and positively impact Just Eat’s liquidity position.
Wonder Group is a New York-based food hall and delivery company that was founded in 2018 by former Walmart chief executive Marc Lore with the aim of providing “fast fine dining".
It partners with brands such as Alanza Pizza, Tejas Barbecue and Royal Greens and recently brought on Amazon’s grocery executive Tony Hoggett as chief operating officer, having also acquired meal kit company Blue Apron in 2023.
The deal is expected to complete during Q1 2025, subject to customary closing conditions, including regulatory approvals.
Just Eat stressed the transaction will not impact its 2024 guidance.
Jitse Groen, founder and chief executive of Just Eat Takeaway.com, said: "The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth. This deal delivers the right home for Grubhub and its employees. I would like to thank everyone at Grubhub for their contributions to both Grubhub and the wider Just Eat Takeaway.com business."
Lore, founder and chief executive of Wonder, added: "Wonder’s acquisition of Grubhub continues our mission to make great food more accessible. As we enhance our customer experience with selection, speed and variety, we’re excited to soon offer a curated selection of Grubhub’s restaurant partners directly in the Wonder app, alongside our owned and operated restaurants and meal kits. Bringing Wonder and Grubhub together is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery."
Just Eat Takeaway is headquartered in Amsterdam and works with 731,000 partners across more than 15 countries.
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