Just Eat has entered the B2B catering market place by snapping up City Pantry, a business that delivers food for office meetings, team lunches and events from more than 400 restaurants and caterers.
The delivery giant is paying £16m for the company, which was founded five years ago by Stuart Sunderland in 2014.
The business currently helps feed more than 120,000 people at 1000 corporate customers every month, working with hundreds of suppliers, including branded restaurant groups such as Itsu, Leon and Bill’s to provide meals for corporate events or business meetings.
City Pantry’s leading position will help Just Eat expand into a UK corporate market estimated to be worth around £10 billion a year, by utilising City Pantry’s brand, technology and B2B know-how to provide corporate customers with a wide range of high-quality, reliable food for delivery and restaurant partners with access to pre-scheduled, high-value corporate orders.
It also provides the potential to expand further into international markets.
The initial cash consideration of £16m was paid using existing resources. Further cash consideration may also be payable subject to certain operational and financial criteria being met over the next three years.
The acquisition of City Pantry follows the agreements to buy restaurant software groups Practi and Flyt announced earlier this year.
Peter Duffy, interim CEO of Just Eat, commented: “Working with City Pantry to accelerate its mission to improve and modernise the workplace dining experience is a great opportunity for Just Eat. It’s the right time for us to enter the corporate market and expand our offering.
“City Pantry has a well-established business, fantastic expertise and an entrepreneurial spirit that matches our own. We look forward to bringing the company into the Just Eat family and working with them to grow in the UK and internationally in this exciting and dynamic market.”