PRINT THIS PAGE Permira to buy UK Gala stake, valuing company at £1.89bn19/08/2005. Source: AltAssets. 
 Europe-based private equity firm Permira is to buy an equity stake in the bingo and casino company Gala in a deal which values the group at £1.89bn. Funds advised by Permira will invest approximately £200m to become a joint and equal investor in Gala alongside current owners Candover and Cinven. A refinancing of the company's debt has also been undertaken as part of the transaction.
Gala Group operates 30 casinos and 166 bingo clubs. Candover and Cinven bought Gala in February 2003 in a deal which valued the group at £1.24bn.
Martin Clarke, partner of Permira, said, 'We have been admirers of the Gala business for many years and approached Candover and Cinven because we have long believed that the prospects for its business are strong. Gala has proved itself time and time again, through impressive earnings growth and its ability to generate cash.
'We are delighted to invest in such a top quality company led by one of the best management teams in the sector. The gaming and betting industry in the UK is likely to undergo considerable change over the next few years and we look forward to working with Cinven and Candover to help Gala exploit the opportunities which will become available.'
In a joint statement, Marek Gumienny, managing director of Candover, and Peter Catterall, partner of Cinven, said, 'In the two years since we acquired Gala, the company's organic growth track record, robust cash flows and further expansion into the casino market have delivered strong investment performance. This transaction, and a previous refinancing, have allowed us to return more than our initial combined investment to our investors whilst retaining a majority stake in the business.'
Permira advises the Permira Funds with a total committed capital of €11bn. In October 2003 Permira closed its third pan-European fund, Permira Europe III, which totals over €5bn. The firm has offices in Frankfurt, London, Madrid, Milan, New York and Stockholm.
Candover's latest fund, the Candover 2001 Fund, raised €2.7bn which brought Candover's total funds managed since inception to over €5bn. The firm has held a first closing of its new fund, the Candover 2005 Fund, with commitments of €2.3bn. The fund has a target of €3bn. Candover has offices in London, Paris and Düsseldorf, and a local advisor in Madrid.
Cinven has offices in Frankfurt, London and Paris. The firm's current fund closed on €4.4bn in April 2002.
Copyright © 2005 AltAssets
|
