Just Eat Orders Out For Growth Overseas

The online takeaway delivery marketplace Just Eat (Other OTC: JSTLF - news) has swallowed up four overseas businesses as it looks to grow share in territories other than its core UK market.

The FTSE 250 firm said it was paying £95m for Rocket Internet (Swiss: OXRKET.SW - news) 's La Nevera Roja brand in Spain and another it owns in Italy.

Foodpanda's hellofood Brazil and hellofood Mexico were the other two online delivery platforms bought, the company said - adding that the four countries had a combined £8bn market.

The company's online marketplace matches home diners with takeaway restaurants - taking a cut from the delivery restaurant's sale in return.

It (Other OTC: ITGL - news) has enjoyed phenomenal growth - with sales rising 50% last year following its flotation in 2014.

Its share price soared 11% in early Friday trading on news of the buyouts.

It had previously stated its ambition to grow further in Spain and Italy as employment and wage levels recover from the financial crisis.

The company had been under pressure to expand abroad as competition heats up in the UK, which accounts for the bulk of its sales.

Its statement said: "The acquisition is in line with Just Eat's strategic ambition to be a market-leader in the geographies in which it operates, bringing scale, focus and new talent to our local operations."

It added that the new businesses grew orders by a combined 83% last year and operational control of hellofood Brazil would pass to its existing iFood business.

Just Eat chief executive, David Buttress, said: "This transaction reflects our ambition to make strategic, value-enhancing acquisitions that consolidate our leadership of the global digital marketplace for takeaway food delivery.

"Just Eat has enhanced its market-leading positions in geographies that we understand and where our existing businesses are performing strongly."