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PPM Ventures acquires UK gaming chain for £40m

PPM Ventures has acquired RAL Holdings, the UK gaming chain operating under the trade name Quicksilver, for £40m. The existing management will retain a 15 per cent interest in the business.

PPM emphasised that it is prepared to help the company take full advantage of the prospective deregulation of the gaming industry through significant expansion.

‘We are delighted to have successfully concluded a management buy-out of RAL which, under the leadership of Nick Harding, has already established a significant gaming presence on the UK's high streets,' said Mathew Turner, a director of PPM.

‘This provides RAL with a formidable platform for further expansion and, bearing in mind PPM's specialist expertise in the gaming and retail sector, we look forward to working closely with management in order to maximise the opportunities for both organic and acquisitive growth,' he said.

Bank of Scotland Corporate Banking will provide debt and mezzanine finance for the new funding.

The UK gaming industry has become increasingly attractive to private equity firms looking to take advantage of the pending deregulation of the industry. Cinven and Candover injected £600m into a joint venture between gambling operators Gala group and Harrah's Entertainment in June this year. The transaction is dependent on the parliamentary approval of the proposed legislation.

PPM focuses specifically on buy-and-build transactions, designed to support the growth of portfolio investments though strategic acquisitions. The firm specialises in consumer-based businesses including leisure and retail, business services, financial services and healthcare.

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