Sky News has learnt that Caledonia Investments is to announce on Monday that it has agreed a deal to acquire the business from Gala Coral, one of the country’s largest betting and gaming groups.
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Caledonia has agreed to buy the company from Gala Bingo Group Ltd, with completion of the transaction subject to approval from the Gambling Commission and the finalisation of a £155m debt facility.
The company has a 38% share of the United Kingdom bingo market, opening 130 clubs with more than 1.1 million active members in the UK.
Duncan Johnson, Head of Unquoted Investments at Caledonia Investments, pointed out that they are delighted with their newest acquisition as it is a “defensive, enduring business model”, which would most definitely generate strong cash and dividend yield and is a flawless fit for the investment criteria that Caledonia Investments has always been looking for.
Gala Coral chief executive Carl Leaver said: “The sale is another transformative step for Gala Coral Group, following the turnaround of the business over the past few years”.
The planned Ladbrokes Coral merger will create Britain’s biggest bookmaker, with nearly 4,000 betting shops.
It is led by Chief Executive Officer, Simon Wykes, and Chief Finance Officer, Alex Wood.
The acquisition by Caledonia does not include the GalaBingo.com online offering, which will be retained by the seller.
“We wish the Gala Retail team all the very best for the future and believe the business will continue to thrive under its new owners”. Unquoted investments involve securities that are not listed on an exchange.
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Caledonia’s unquoted holdings also include Park Holidays and asset manager Seven Investment Management.
