Just Eat has snapped up City Pantry for an initial £16m.
City Pantry, which was founded in 2014, acts as a middleman between caterers and restaurants and corporates looking to provide food for employees or clients. It works with hundreds of brands including Itsu, Leon and Bill’s.
The deal should enable Just Eat to move into the corporate market in the UK, which it says is worth around £10 billion a year. It will also provide a platform for Just Eat to expand the offer into international markets.
The initial £16m may rise if certain operational and financial targets are met over the next three years.
“Working with City Pantry to accelerate its mission to improve and modernise the workplace dining experience is a great opportunity for Just Eat,” said Peter Duffy, Interim CEO of 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.”
Stuart Sunderland, founder and CEO of City Pantry, said: “What we eat in our personal lives has dramatically changed in the past 10 years in terms of quality and choice. The food revolution is now beginning to happen at work and City Pantry is at the forefront of this. We know that Just Eat shares our belief and we’ve been impressed with its vision of what we can do together.”
Just Eat’s purchase of City Pantry comes after it agreed to buy restaurant software groups Practi and Flyt.