German Delivery Hero acquires majority stake in Spanish delivery app Glovo
German food delivery group Delivery Hero said it has signed an agreement to buy an additional 39.4% stake in Spanish delivery app Glovo, making it the majority shareholder of the company.
The deal is expected to close in the second quarter of 2022, subject to relevant regulatory approvals, Delivery Hero said in a statement Friday. Delivery Hero currently holds an approximate 44% interest in Glovo on an undiluted basis.
“We will continue to invest in the Glovo team and product, and see many opportunities to further improve their operations with our resources and expertise,” said Niklas Ostberg, Managing Director and Co-Founder of Delivery Hero.
“Their product orientation and speed of execution have enabled them to occupy a leading position in 16 of the 25 markets, although they were launched several years later” compared to its peers.
With the demand for door-to-door deliveries surging sharply during the Covid-19 pandemic, Delivery Hero has invested heavily in food delivery and what is known as Rapid Trade, which aims to deliver goods in as little time as possible. only 10 to 15 minutes. The company, which operates in around 50 countries in Europe, Latin America, Asia, the Middle East and North Africa, is the parent company of the Talabat food delivery service.
Under the terms of the agreement, Delivery Hero will acquire the additional interest in Glovo, on an undiluted basis, in exchange for shares of Delivery Hero.
Glovo has an execution rate of approximately € 3 billion ($ 3.41 billion) in gross transaction value, an annual organic growth rate of 80% in 2021 and € 800 million in revenue. business, according to the statement. It operates in 1,300 cities in 25 countries in Europe, Central Asia and Africa.
“With the markets we cover today, we can serve a total population of over 700 million people,” said Oscar Pierre, Managing Director of Glovo.
“Our potential is untapped and I am happy to have found a partner that matches our ambition, our culture and who will continue to support this adventure that we have launched to push innovation further and strengthen our multi-category offer. and create added value for all our stakeholders and the industry ”,
Glovo will continue to operate with its current platform and brand, under the guidance of the existing management team, Delivery Hero said.
JP Morgan was the financial advisor and Cuatrecasas the legal advisor to Delivery Hero on the transaction. Morgan Stanley was appointed financial advisor and Latham & Watkins legal counsel to the selling shareholders. Uria Menendez was Glovo’s legal advisor.
Updated: January 1, 2022, 9:01 a.m.