The takeaway platform Hungry has just been acquired by the large German company Delivery Hero in a deal that values Hungry at over DKK 250 million. Throughout the process, CLEMENS advised Hungry on issues such as risk hedging, price negotiation and terms of the deal.
With legal advice from CLEMENS, Hungry entered into an agreement last year in which the multinational food delivery service Delivery Hero increased its ownership stake from 25 to 44 percent. With the recent three-digit million dollar deal, Delivery Hero is now the sole owner of Hungry, while founder Morten Larsen and CEO Rune Risom will continue to lead Hungry's development and operations.
Once again, CLEMENS has been a close partner and advisor to Hungry.
Even though it's a sale to an existing co-owner, it's still a complicated process. The new owner is a large corporation and a publicly listed company that is subject to a number of compliance rules. At the same time, Hungry operates in a special industry with high competition between a few players, where e.g. IP rights, brand and Gross Merchandise Value play a major role in a company's value," says partner in CLEMENS, Morten Breum-Leer.
He continues:
With these parameters in mind, our focus has been to create the very best result for Hungry. Throughout the process, we have therefore advised and challenged Hungry on, among other things, negotiating price and terms as well as timing and guarantees after the deal. Here, it has really paid off that we have been advising Hungry and founder Morten Larsen right from the start of the company.
Strong in the market
In recent years, the Danish takeaway platform Hungry, founded in 2013, has rapidly become a major player in the market. In the last year alone, the Aarhus-based company has delivered food worth more than DKK 450 million and currently has over 2,200 restaurants across Denmark connected to the portal.
With the recent sale to multinational food delivery service Delivery Hero, ambitions have been taken to the next level.
We have a goal of becoming number one in Denmark, and it takes a lot of financial muscle to create that position in the highly competitive market we're in. Therefore, we are extremely pleased with the deal, which gives us the opportunity to develop Hungry's business - with Delivery Hero's technological platform and massive experience from cities all over the world, we will be in a very strong position, says Hungry founder Morten Larsen.
In addition to increasing the number of partner restaurants from 2,200 to over 4,000 restaurants, supermarkets and retail stores within a short period of time, Hungry's ambition is to enter new business areas such as fast delivery of all types of goods in Denmark.
Attention to detail
In the multi-million dollar deal, the advice from CLEMENS and the long-standing close collaboration has been extremely valuable for the takeaway platform.
As an entrepreneur, where new things happen all the time and decisions are made in a hurry, it's worth its weight in gold to have a professional partner who understands the details and the legal aspects and consequences of all decisions. CLEMENS knows the business inside out and has had my back throughout the entire process. I have not yet experienced a problem that they could not help me with, says Morten Larsen.
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