German online food delivery service Delivery Hero has announced the acquisition of the remaining 37% stake in its Saudi Arabian subsidiary HungerStation for a total consideration of €267.3m ($297m).
Connecting more than 10,000 partners with customers, HungerStation has established itself as one of the leading food delivery players in Saudi Arabia.
In fiscal year 2022, HungerStation reported a revenue growth of 36% to €609m and achieved a positive EBIT, including group costs of more than €50m.
Delivery Hero believes that HungerStation would be a valuable asset for the company.
The deal will allow Delivery Hero to further strengthen its ties with HungerStation and its ecosystem, which includes mutual knowledge sharing and tech integration.
With this deal, the German food delivery platform has further bolstered its presence in the Kingdom of Saudi Arabia.
Delivery Hero co-founder and CEO Niklas Östberg said: “We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition, and potential, and are committed to contributing to its ongoing success through HungerStation.
“I look forward to continuing to build great products and delivering an amazing experience for our Saudi customers.”
Last April, Delivery Hero announced a debt financing syndication of €1.4bn to bolster its long-term liquidity position.
The transaction comprises several term facilities, which include a $825m term facility and a €300m term facility.
Delivery Hero noted that the term facilities will have a maturity of 5.25 years, and the proceeds will be used for the potential refinancing of convertible debt at maturity, working capital, and guarantees.
