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January 3, 2022

Delivery Hero to acquire additional stake in Glovo

The transaction is expected to complement Delivery Hero and Glovo’s delivery expertise and geographical footprint.

German online food delivery service Delivery Hero has signed an agreement for an additional 39.4% stake in Spanish food delivery app Glovo.

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Currently, Delivery Hero owns 44% interest on a non-diluted basis in Glovo, and upon completion of the latest deal, it will become a majority shareholder in the Spanish company.

Delivery Hero co-founder and CEO Niklas Östberg said: “The Delivery Hero team has admired and supported Glovo for many years. They have been frontrunners in the industry by offering a multi-vertical service from the start.

“Their product focus and fast execution have given them a leading position in 16 out of 25 markets, despite having launched a number of years later than their peers​​.

“We will continue to invest in Glovo’s team and product and see many opportunities to further enhance their operations with our resources and expertise.”

As per the terms of the deal, Delivery Hero has agreed to issue its own shares to Glovo shares sellers.

Completion of the deal is subject to obtaining relevant regulatory approvals and is expected to take place in the second quarter of this year.

Upon completion of the transaction, Glovo will continue operations with its existing brand and platform, and the existing management team would be led by its two founders who will remain invested in the company.

The deal is expected to complement Delivery Hero and Glovo’s delivery expertise and geographical footprint.

Additionally, the two parties intend to further improve efficiencies and accelerate product development using their technologies.

For this transaction, JP Morgan served as the financial advisor and Cuatrecasas as legal advisor to Delivery Hero.

Morgan Stanley and Latham & Watkins served as financial advisor and legal counsel, respectively for the selling shareholders, and to Glovo, Uría Menéndez acted as legal counsel.

Last December, Delivery Hero unveiled its plan to downsize its Foodpanda operations in Germany and also divest its Foodpanda Japan.

Free Report
img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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