Just Eat Takeaway Explores Selling GrubHub Just a Year After Buying It

Just Eat Takeaway.com announced this week that the company is considering a full or partial sale of Grubhub.

The European food delivery company bought the U.S. food delivery platform for $7.3 billion barely a year ago.

Just Eat Takeaway had faced calls from a prominent activist investor to sell Grubhub and refocus on Europe.

The company’s board “confirms its alignment with shareholders in wanting to both create and realize value from the Company’s highly attractive portfolio of assets.”

“As such, management is currently, together with its advisers, actively exploring the introduction of a strategic partner into and/or the partial or full sale of Grubhub.”

[The company said it couldn’t guarantee such a sale will be agreed, or when it might happen. “Further announcements will made as and when appropriate.”

Just Eat Takeaway has been met with growing calls from prominent shareholders to divest its Grubhub division. Just Eat Takeaway.com completed its acquisition of the U.S. food ordering platform for $7.3 billion barely a year ago, pipping Uber and Germany’s Delivery Hero to a deal after a heated takeover battle.

It was last October that activist investor Cat Rock Capital called on Just Eat Takeaway.com to sell Grubhub and “refocus its business on Europe.” Cat Rock owns about 6.5% of the company.

Alex Captain, founder and managing partner of Cat Rock, said Just Eat Takeaway.com’s share price has been “deeply depressed,” leaving the company “vulnerable to takeover bids well below its long-term intrinsic value.”

Just Eat Takeaway.com shares rose over 7% on news of the company’s interest in selling Grubhub.

Jitse Groen, CEO, said the company expects profitability to “gradually improve throughout the year,” reaching positive adjusted EBITDA (earnings before interest, tax, depreciation and amortization) in 2023.

“Our priority for 2022 lies in enhancing profitability and strengthening our business,” Groen said in a statement.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.