Rank Group has announced it is to acquire Gala Casinos from Gala Coral Group for £205 million.
Rank will acquire 23 casinos in Great Britain and three non-operating licences. The deal is set to create the largest casino operator in Great Britain by number of casinos, with 58 operating venues and 13 non-operating licences.
Rank said the deal presents a “significant opportunity” for it to continue delivering sustainable value for shareholders through the development of its casino portfolio.
The rebranding of Gala casinos will see Rank’s Grosvenor brand extended into 11 new cities.
Commenting on the transaction, Ian Burke, chairman and chief executive officer of Rank, said: “We are delighted to have agreed terms with Gala Coral. This acquisition will deliver a step change in Rank’s earnings by capitalising on our proven record of operational excellence in the British casino sector and will be earnings enhancing in the first full year of ownership.
“By rolling out the ‘G Casino’ format into the Gala estate and expanding the Grosvenor Casino brand into 11 new cities, we will accelerate the growing awareness of the brand and support the development of a multi-channel gaming business.”
Gala Coral’s casinos in Dundee and Gibraltar, its non-operating licence for the City of Westminster and all of the central management functions previously associated with Gala Casinos are not included in the acquisition.
Headquartered in Maidenhead, Berkshire, Rank’s principal market is Great Britain, where it operates Grosvenor Casinos (35 casinos, Mecca Bingo (103 bingo clubs) and Rank Interactive (online gaming and betting). In addition, Rank operates in Spain as Top Rank España (11 bingo clubs) and in Belgium as Grosvenor Casinos (two casinos).
In 2010, Rank’s businesses received more than 22 million customer visits, with the group employing around 8,000 staff.
