Gala\’s private-equity owners, Candover, Cinven and Permira, have agreed to invest a further £275m each to finance the acquisition and maintain their equal ownership of the business.
“Coral Eurobet is a superb fit with Gala. There are significant revenue-enhancing synergy opportunities in combining the two companies,” said Gala Chief Executive, Neil Goulden.
Both companies seek to take advantage of gambling deregulation in the UK, added Goulden.
“The betting shops and bingo clubs will continue to be the engine of the new company, but the internet will provide the major growth, as an enlarged betting, gaming and sportsbook offering comes together,” said Coral Managing Director, Wilf Walsh.
The irony about the deal comes from the fact that both companies belonged to Bass until December 1997. Gala was sold for £236m, and Coral followed exactly a year later for £390m.
Today the two came together for a combined valuation of £4.07bn.
Calculators
