Just Eat has snapped up corporate catering business City Pantry as the online food company looks to tap into the City’s lucrative lunchtime market.
Bosses spent £16 million on City Pantry and will access 1,000 corporate customers a month, feeding 120,000 people. It means the company has spent nearly £45 million on acquisitions so far this year.
It is understood that Deliveroo looked at a potential investment in City Pantry a few years ago, but the rival decided to walk away.
Just Eat said the UK corporate market is estimated to be worth around £10 billion a year with companies offering greater perks for employees such as free lunches.
Founded in 2014, City Pantry links up with caterers and restaurants, including Itsu, Leon and Bill’s.
The initial cash consideration of £16 million 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.
Peter Duffy, interim chief executive of Just Eat, said: “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 previously went through two funding rounds – a seed round in 2016 led by The Angel CoFund and True Capital, and a £4 million Series A round in 2018.
Just Eat has previously snapped up software groups Practi and Flyt this year, paying £6.7 million and £22 million respectively.