Wonder Announces Acquisition of Grubhub

Rhea-AI Summary

Wonder has announced the acquisition of Grubhub from Just Eat Takeaway.com for an enterprise value of $650 million, comprising $500 million in senior notes and $150 million cash. The deal is expected to close in Q1 2025. Wonder, which operates 28 locations in the Northeastern U.S., has also secured an additional $250 million in new capital. The merger combines Wonder's 'Fast Fine' dining concept, featuring Multi-Restaurant Ordering from renowned chefs, with Grubhub's network of 375,000 merchants and 200,000 delivery partners. The integration aims to create a comprehensive food delivery super app, offering first-party and third-party restaurants, groceries, and meal kits in a single platform.

Positive

• Acquisition expands Wonder's market reach through Grubhub's extensive network of 375,000 merchants
• Secured additional $250 million in new capital funding
• Integration creates comprehensive food delivery platform combining multiple services
• Wonder's current operations show sub-30-minute delivery times
• Access to Grubhub's established corporate and campus dining business

Negative

• Significant debt assumption with $500 million in senior notes
• Large cash outlay of $150 million required for acquisition
• Integration subject to regulatory approval risks
• geographical presence with only 28 current locations

News Market Reaction

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+16.00% News Effect

On the day this news was published, JTKWY gained 16.00%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK and CHICAGO, Nov. 13, 2024 /PRNewswire/ -- Wonder, a new kind of food hall that is revolutionizing the food industry by creating the super app for mealtime, announced that it is acquiring Grubhub, a leading food ordering and delivery platform with more than 375,000 merchants and 200,000 delivery partners across the United States. Integrating Grubhub with Wonder is the next step in Wonder's mission to make great food more accessible, bringing together the convenience, speed and selection of first-party and third-party restaurants, groceries and meal kits in a single app order. Additionally, all Wonder locations will be available on Grubhub for third-party delivery.

Wonder will acquire Grubhub from Just Eat Takeaway.com for an enterprise value of $650 million, including $500 million of senior notes and $150 million cash. Completion is expected during Q1 2025, subject to customary closing conditions including regulatory approvals. Jefferies served as Wonder's exclusive financial advisor on the transaction.

Wonder has also announced an additional $250 million in capital raised exclusively from new investors to further its mission and growth.

Founded by serial entrepreneur Marc Lore, Wonder is making great food more accessible while pioneering a new category of "Fast Fine" dining. Wonder offers Multi-Restaurant Ordering, a first in the industry where customers can order from upwards of 30 restaurants in a single order, with each item being made-to-order in a sequenced fashion so that they finish simultaneously and can be delivered to the customer together.

The platform features exclusive offerings from the world's best chefs–including Bobby Flay, Marcus Samuelsson and José Andrés–and the country's best restaurants–including Maydan, Tejas Barbecue, Di Fara Pizza and Fred's Meat and Bread. Wonder currently has 28 locations in the Northeastern U.S., with seven additional locations slated to open by the end of the year. Leveraging its proprietary technology, Wonder is able to differentiate itself from every other restaurant or food delivery concept by offering exceptionally high-quality food, with order-to-delivery times below 30 minutes.

For 20 years, Grubhub has connected merchants with nearby customers looking for takeout and delivery. Its logistics network covers the vast majority of the U.S. population with on-demand delivery from independent restaurants, leading national restaurant brands, and convenience, grocery, pet and office supply retailers. The company's loyalty program, Grubhub+, provides members with $0 delivery fees, lower service fees and 5 percent back on pickup orders. Beyond its consumer delivery marketplace, Grubhub has a Campus Dining business that powers online ordering at more than 360 universities and a Corporate Accounts business that provides flexible meal perks platforms for more than 10,000 companies.

"Wonder's acquisition of Grubhub continues our mission to make great food more accessible. As we enhance our customer experience with selection, speed, and variety, we're excited to soon offer a curated selection of Grubhub's restaurant partners directly in the Wonder app, alongside our owned and operated restaurants and meal kits," said Marc Lore, Founder and CEO of Wonder. "Bringing Wonder and Grubhub together is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery." 

"I am incredibly excited for Grubhub to join forces with Wonder and bring more value to our diners, merchants and delivery partners," said Howard Migdal, Grubhub CEO. "Since our earliest days, Grubhub has helped restaurants open their doors to new customers, while introducing diners to new cuisines. That's why I'm confident that Grubhub will complement Wonder's mission to make great food more accessible and that together we will create remarkable dining experiences for more customers across the country."

About Wonder
Wonder is a new kind of food hall that is revolutionizing the food industry by creating the super app for mealtime, operating a collection of delivery-first restaurants and pioneering a new category of "Fast Fine" dining. 

Featuring some of the world's best chefs including Bobby Flay, Jose Andres, Nancy Silverton and Marcus Samuelsson, along with award-winning restaurants from across the country including Tejas Barbeque and Di Fara Pizza, customers can experience any combination of these chefs and restaurants all together in one order for the first time. In 2023, Wonder acquired meal kit pioneer Blue Apron.

About Grubhub
Grubhub is a leading U.S. food ordering and delivery marketplace. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms, and an improved delivery experience. Grubhub features 375,000 merchants in over 4,000 U.S. cities.

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SOURCE Grubhub

FAQ

What is the total value of Wonder's acquisition of Grubhub?

Wonder is acquiring Grubhub for an enterprise value of $650 million, consisting of $500 million in senior notes and $150 million in cash.

When is the Wonder-Grubhub acquisition expected to close?

The acquisition is expected to close during Q1 2025, subject to customary closing conditions and regulatory approvals.

How many merchants and delivery partners does Grubhub currently have?

Grubhub has more than 375,000 merchants and 200,000 delivery partners across the United States.

How much additional capital did Wonder raise alongside the Grubhub acquisition?

Wonder announced an additional $250 million in capital raised exclusively from new investors.