Caledonia Investments has agreed terms to acquire Gala Bingo Holdings Limited (“Gala Bingo”), the UK’s largest retail bingo operator, from Gala Coral Group Limited (“Gala Coral”) in a transaction which values the business at £241m.
Led by Chief Executive Officer, Simon Wykes, and Chief Finance Officer, Alex Wood, Gala Bingo has a 38% share of the UK retail bingo market, operating a national estate of 130 clubs with over 1.1 million active members. For its financial year to 26 September 2015, adjusted on an unaudited basis to show the standalone business being acquired, Gala Bingo reported EBITDA of £52.7m and profit before tax of £33m and had gross assets at that date of £189.6m.
On completion, which is subject to change of control approval of the Gambling Commission and finalisation of a £155m senior debt facility, Caledonia will invest £97.8m in cash to acquire 99.5% of the equity of Gala Bingo, with the management team subscribing a further £0.5m.
The acquisition will not include Gala Coral’s branded online bingo offering, galabingo.com, which will be retained by the vendor.
CLDN : Caledonia buys Gala Bingo