Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) has struck a deal to sell its US-based business, Grubhub, for $650 million just three years after buying it for $7.3 billion.
The Anglo-Dutch group said an agreement has been made with US delivery rival Wonder Group Inc, resulting in net cash proceeds of "up to $50 million" and the transfer of $500 million of Grubhub senior bonds.
Getting rid of the US subsidiary improves the group's overall capital structure, liquidity and free cash flow generation, Just Eat said, as well as increasing its ability to invest in other countries where it "has the greatest competitive advantage".
It will "accelerate our growth," said founder and chief executive Jitse Groen,
Completion of the deal is expected by March next year.
Just Eat said the enterprise value of $650 million reflects its expectation that New York City fee caps will be amended in the near term, with Grubhub along with DoorDash and Uber Eats having filed lawsuits to overturn the caps.