Rapid grocer Getir has acquired its rival Gorillas in a deal which values the combined companies at around $10bn.
“This move underscores how Getir leads consolidation in this sector,” Getir said.
The terms of the deal were not shared by Getir when the acquisition was announced this afternoon.
“Markets go up and down, but consumers love our service and convenience is here to stay,” said Nazim Salur, founder of Getir. “The super-fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created seven years ago.”
Speculation about the acquisition had been rife in recent months, with reports it would be an all-stock deal, meaning Gorillas investors wouldn’t receive any cash but see their Gorillas shares converted into Getir ones. Other reports suggested Gorillas investors had been expected to inject $100m into the business to secure the deal.
The Financial Times, citing people familiar with the terms, reported some investors would receive around $40m in cash as well as equity. However, many backers are understood to have been left with little or no return on their investment.
Getir provided no detail on how the two operations would be integrated, however given that many of the two companies’ dark stores are located in similar areas, job cuts and closures would appear likely.
“We will do our best to welcome people incoming from Gorillas as we remain determined to continue redefining the industry of groceries,” Nazim Salur’s son and company co-founder Mert Salur said in a LinkedIn post.
Getir’s UK general manager Kristof Van Beveren said the acquisition will allow the company to “reach even more customers with strengthened service” and “reaffirms our long-term commitment and dedication to the sector”.
Consolidation in the quick-commerce sector began shortly after its arrival in the UK during the pandemic, however the deal marks the first major acquisition in the still-burgeoning sector.
Having been in hyper-growth mode for some time – through the heady days of 2021 when venture capitalists ploughed $5bn into the sector, according to PitchBook data – more recently the surviving rapid grocers have shed staff and closed dark stores as they seek the ‘path to profitability’ demanded by restless investors.
According to a source with knowledge of the matter, it is understood there is bad blood between Getir and Gorillas CEO Kağan Sümer, stretching back to his days as a consultant in Istanbul, working with Getir.
There are some at the company that “would love nothing more” than to “kill the Gorillas brand” the source said.
The FT reports Sumer is expected to leave the company.
The acquisition leaves Getir with one major rival in the UK, Gopuff, and one other player, Zapp, which is considerably smaller.
“Despite poor economic performance, it’s good to know the Gorillas legacy shall live on,” said Quaid Combstock, Jiffy’s former head of delivery operations and now a q-commerce consultant. “Of course, the overall purchase price is far below what investors has hoped to achieved, but it far exceeds what I personally expected.
“Despite a higher than expected purchase price, there is a benefit to Getir, with lots of overlaps between the two companies, so there will great opportunity for cost savings. That said, there will inevitably be job losses which will be sad to see,” Combstock added.
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