PRINT THIS PAGE Gala - backed by Permira, Candover and Cinven - acquires Coral in £2.2bn deal07/10/2005. Source: AltAssets. 
 Bingo and casino company Gala, backed by Permira, Candover and Cinven, has acquired Coral Eurobet, the bookmaker and internet gaming operator, for a consideration of £2.18bn. Each of Gala's three private equity owners is increasing its investment in the enlarged company by £275m to help finance the acquisition.
The enlarged company has an enterprise value of more than £4bn, trades from 1,450 outlets, and employs 17,000 people.
Gala chief executive Neil Goulden and chairman John Kelly will carry on in the same posts in the merged company. Coral's Vaughn Ashdown and Mick Mariscotti will join the Gala Group board to help facilitate the integration of the two companies.
Goulden said, 'This is the perfect time to merge Gala and Coral Eurobet as both companies seek to take maximum advantage of the deregulating gaming market. The merger will add enormous benefit not just to our shareholders but also to our 17,000 employees and 2.2m customers.'
Ashdown, chief executive of Coral, added, 'The combination of two of Britain's top private equity-backed businesses has been three years in the planning and I am personally delighted to have achieved the best consolidation opportunity in our industry. It will allow the Coral Eurobet and Gala brands to thrive and grow together.'
Permira bought its equity stake in Gala in August 2005 in a deal which valued the group at £1.89bn. Candover and Cinven backed the £1.24bn buy-out of Gala in February 2003.
Candover provides equity for large European buy-outs.
Cinven focuses on companies headquartered in Europe, which have a minimum enterprise value of €500m.
Permira primarily targets investments in global businesses with a strong European presence.
Copyright © 2005 AltAssets
|
