San Francisco Firm Targets German Food Group’s Major Shareholder in Strategic Acquisition Push

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San Francisco-based private equity firm TowerBrook Capital has approached a major shareholder in Germany’s largest food delivery group, Lieferando, in a bid to explore a potential sale or restructuring, according to sources familiar with the discussions. The move comes as Lieferando, a subsidiary of German food giant Delivery Hero, faces mounting pressure from investors and regulators amid a volatile market for food delivery platforms.

The approach by TowerBrook—known for its activist investment strategies—follows a broader pattern of financial maneuvering in Europe’s food delivery sector, where companies are reassessing their business models in the face of declining growth and rising competition. While neither TowerBrook nor Lieferando has confirmed the discussions, industry insiders say the talks center on restructuring options, including a possible spin-off or partial sale of assets.

The development echoes recent turmoil in the sector, where Delivery Hero itself has been the subject of a hostile takeover bid from Uber. In May 2026, Uber announced an €11.5 billion offer for Delivery Hero, which was initially rejected by the German company’s board. Uber has since signaled it may increase its bid, further intensifying pressure on Delivery Hero’s shareholder base—including institutional investors with stakes in Lieferando.

Lieferando, which operates as Germany’s dominant food delivery platform with a market share exceeding 60%, has been a key asset for Delivery Hero in Europe. However, the company has faced criticism over its pricing strategies, operational inefficiencies, and regulatory scrutiny in multiple markets. Analysts suggest that TowerBrook’s interest may stem from concerns over Lieferando’s long-term profitability, particularly as delivery fees and rider wages continue to rise.

Pressure on Delivery Hero’s European Operations

Delivery Hero’s European arm has been a focal point for activists and hedge funds due to its high valuation relative to revenue growth. The company’s stock has underperformed peers in recent quarters, with Lieferando’s margins squeezed by inflation and shifting consumer behavior. TowerBrook’s approach to Lieferando’s shareholders—if successful—could pave the way for a more aggressive restructuring, including cost-cutting measures or a strategic pivot toward profitability.

Sources indicate that TowerBrook has been in contact with BlackRock and Vanguard, two of Lieferando’s largest institutional shareholders, to gauge support for a potential overhaul. BlackRock, which holds a stake in Delivery Hero through its European funds, has previously urged the company to improve operational transparency. A spokesperson for BlackRock declined to comment on the matter, citing standard policy.

Broader Implications for the Food Delivery Market

The potential restructuring of Lieferando could have ripple effects across Europe’s food delivery landscape. Competitors such as Wolt (backed by Microsoft) and Glovo (owned by Just Eat Takeaway) have been expanding aggressively in Germany, while local players like Flipp have gained traction by offering lower commissions to restaurants. Analysts warn that Lieferando’s inability to adapt could accelerate market share losses to more nimble rivals.

Uber’s ongoing bid for Delivery Hero adds another layer of complexity. If TowerBrook’s discussions lead to a partial sale of Lieferando—or a push for a full divestiture—it could influence Uber’s strategy. A combined entity under Uber’s control would create a global food delivery giant, but it would also face antitrust scrutiny in multiple jurisdictions, including the European Union.

Regulatory and Shareholder Scrutiny

German regulators have already signaled concerns about market concentration in food delivery, with the Federal Cartel Office launching an investigation into Delivery Hero’s practices in 2025. Any restructuring involving Lieferando would likely draw further attention from antitrust authorities, particularly if it involves asset sales or changes to rider compensation policies.

Shareholders in Delivery Hero have grown restless, with some advocating for a breakup of the company’s international operations. Lieferando, in particular, has been cited as a drain on resources due to its high customer acquisition costs and thin margins. If TowerBrook’s push gains traction, it could force Delivery Hero’s board to reconsider its long-term strategy for Europe.

What Comes Next?

While TowerBrook’s discussions remain confidential, industry observers expect a decision in the coming months. If the firm secures enough shareholder support, it could propose a formal restructuring plan, potentially including:

• A spin-off of Lieferando as an independent entity, with a focus on profitability over growth.
• A partial sale of Lieferando’s assets to a strategic buyer, possibly a private equity firm or a regional competitor.
• Cost-cutting measures, including reductions in rider incentives or restaurant commissions.
• A push for Delivery Hero to divest Lieferando entirely, either through a public offering or a direct sale.

Delivery Hero’s board has not yet responded to requests for comment, but sources suggest internal discussions are underway. The company’s CEO, Nicolai Müller, has previously emphasized the importance of Lieferando to Delivery Hero’s European strategy, though he has also acknowledged the need for operational improvements.

As the food delivery war intensifies, Lieferando’s future will hinge on whether TowerBrook can rally enough shareholder support—or whether Delivery Hero’s board preempts a takeover by announcing its own restructuring plan. One thing is clear: the stakes are higher than ever in Europe’s most competitive food delivery market.