Gala-Coral merger creates £4bn gaming giant |
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Sat, 08 Oct 2005 17:35
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Bingo and casino operator Gala yesterday bought betting shop chain Coral Eurobet for £2.18 billion creating Europe’s largest privately-owned betting and gaming giant.
The new enlarged entity will be worth more than £4 billion and will trade from 1,450 outlets. Coral’s chief executive and former bodybuilder Vaughn Ashdown will leave after the two businesses are integrated.
The sale of the bookmaker is expected yield a profit of approx. £155 million which would be shared by Ashdown and 65 members of his management team. Ashdown has promised to reinvest some of his gains into the new business.
Coral runs 1,267 shops which include betting shops and dog tracks. Gala will combine these with its own 167 bingo clubs, 30 casinos and fledgling interactive business on TV, telephone and the Internet.
The new entity is expected to have 2.2 million customers and will employ 17,000 people. Gala’s current chairman John Kelly and chief executive Neil Goulden will continue in their positions. Goulden said the nation’s deregulation would benefit the firm’s betting and bingo business. Strict membership rules will be relaxed and casinos will be allowed to advertise, it is expected.
The acquisition was financed by additional £275 million funding by Gala owners – Candover, Cinven and Permira.
The acquisition is the second such deal after Stanley Leisure was sold to William Hill in May.
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