Uglyowl
10-08-2005, 09:09 PM
Associated Press/LONDON
By LILLY VITOROVICH
OCT. 7 8:16 P.M. ET British bingo and casino group Gala Group Ltd. said it has bought betting shop chain Coral Eurobet for 2.18 billion pounds ($3.88 billion, euro3.19 billion) in a deal that will create one of Europe's biggest gaming businesses.
The enlarged company will have an enterprise value of around 4 billion pounds, or about $7.1 billion (euro5.85 billion), catapulting it alongside the world's largest online poker group PartyGaming PLC, which has a market capitalization of 3.42 billion pounds, or about $6.08 billion (euro5.01 billion).
The group will have 1,450 outlets, more than 2.2 million customers and a 17,000-strong work force.
Gala's owners, private equity firms Candover Investments PLC, Cinven and Permira, are increasing their investment in the enlarged company by 275 million pounds ($489 million, euro402.67 million) each to help finance the acquisition. Debt has been provided by Royal Bank of Scotland Group PLC, Lehman Brothers Holdings Inc. and Intermediate Capital Group.
Following the completion of the deal, the enlarged gaming group will be Britain's third-largest bookmaker, with 1,267 licensed betting offices. It will be Britain's largest bingo operator with 167 clubs, and a major player in casinos, with 30 outlets.
Gala Chief Executive Neil Goulden said Coral Eurobet, which was established in 1926, is an "ideal fit with Gala."
"It fits into our high volume, low-ticket strategy and allows us to move into licensed betting offices for the first time," he said.
In September 2002, Charterhouse Capital Partners backed Coral's management team, led by Chief Executive Vaughn Ashdown and Chief Financial Officer Mick Mariscotti, to acquire Coral Eurobet for 860 million pounds, or about $1.5 billion (euro1.24 billion) at recent exchange rates.
Gala's move follows two major online gaming initial public offerings on the London Stock Exchange -- PartyGaming in June and 888 Holdings PLC late last month.
Since PartyGaming's IPO, investors have wiped off more than a third of its market capitalization on concerns about growth. On Sep. 6, PartyGaming warned that players joining its site weren't spending as much as its core users.
888 made a more somber debut on the bourse amid concerns about the online gaming industry's growth outlook.
Goulden wasn't immediately available to comment on whether the combined group plans to follow suit and seek a listing.
By LILLY VITOROVICH
OCT. 7 8:16 P.M. ET British bingo and casino group Gala Group Ltd. said it has bought betting shop chain Coral Eurobet for 2.18 billion pounds ($3.88 billion, euro3.19 billion) in a deal that will create one of Europe's biggest gaming businesses.
The enlarged company will have an enterprise value of around 4 billion pounds, or about $7.1 billion (euro5.85 billion), catapulting it alongside the world's largest online poker group PartyGaming PLC, which has a market capitalization of 3.42 billion pounds, or about $6.08 billion (euro5.01 billion).
The group will have 1,450 outlets, more than 2.2 million customers and a 17,000-strong work force.
Gala's owners, private equity firms Candover Investments PLC, Cinven and Permira, are increasing their investment in the enlarged company by 275 million pounds ($489 million, euro402.67 million) each to help finance the acquisition. Debt has been provided by Royal Bank of Scotland Group PLC, Lehman Brothers Holdings Inc. and Intermediate Capital Group.
Following the completion of the deal, the enlarged gaming group will be Britain's third-largest bookmaker, with 1,267 licensed betting offices. It will be Britain's largest bingo operator with 167 clubs, and a major player in casinos, with 30 outlets.
Gala Chief Executive Neil Goulden said Coral Eurobet, which was established in 1926, is an "ideal fit with Gala."
"It fits into our high volume, low-ticket strategy and allows us to move into licensed betting offices for the first time," he said.
In September 2002, Charterhouse Capital Partners backed Coral's management team, led by Chief Executive Vaughn Ashdown and Chief Financial Officer Mick Mariscotti, to acquire Coral Eurobet for 860 million pounds, or about $1.5 billion (euro1.24 billion) at recent exchange rates.
Gala's move follows two major online gaming initial public offerings on the London Stock Exchange -- PartyGaming in June and 888 Holdings PLC late last month.
Since PartyGaming's IPO, investors have wiped off more than a third of its market capitalization on concerns about growth. On Sep. 6, PartyGaming warned that players joining its site weren't spending as much as its core users.
888 made a more somber debut on the bourse amid concerns about the online gaming industry's growth outlook.
Goulden wasn't immediately available to comment on whether the combined group plans to follow suit and seek a listing.